prosecutions Archives - Ireland's Forecourt & Convenience Retailer https://forecourtretailer.com/tag/prosecutions/ Ireland's Only Forecourt & Convenience Retailer Thu, 16 Jun 2022 09:27:05 +0000 en-GB hourly 1 https://wordpress.org/?v=6.5.2 https://forecourtretailer.com/wp-content/uploads/2021/03/cropped-IFCR-Site-Icon-32x32.png prosecutions Archives - Ireland's Forecourt & Convenience Retailer https://forecourtretailer.com/tag/prosecutions/ 32 32 94949456 HMRC signals closing time for Electronic Sales Suppression (ESS) in UK stores https://forecourtretailer.com/hmrc-signals-closing-time-for-electronic-sales-suppression-ess-in-uk-stores/ Thu, 16 Jun 2022 09:27:05 +0000 https://forecourtretailer.com/?p=20627 Users of Electronic Sales Suppression have been put on notice by HM Revenue and Customs (HMRC) as it brings its new powers to bear on

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Users of Electronic Sales Suppression have been put on notice by HM Revenue and Customs (HMRC) as it brings its new powers to bear on this form of tax evasion in the UK.

Electronic sales suppression (ESS) is known to be in use in the retail sector. It is a form of tax evasion where the business manipulates electronic sales records, either during or after the point of sale, to hide or reduce the value of individual transactions.

As Electronic Point of Sale (EPOS) systems have become more sophisticated the techniques of artificially hiding or reducing the value of individual transactions have become more diverse. Some EPOS system manufacturers and software designers have told HMRC that businesses openly ask for ESS functionality to be built into their till systems.

This concealed form of tax evasion reduces the recorded turnover of the business and as a result, their tax liabilities, whilst still providing what appears to be a credible set of records.

Tax evasion not only results in a loss of money for public services, but it also gives non-compliant businesses an unfair market advantage over their competitors who pay what they owe.

First announced in Spring Budget 2021, HMRC now has new powers to tackle ESS and penalise those who evade in this way. These powers came into effect in February 2022 and mean that HMRC can take stronger action against anyone found to be making, supplying or promoting ESS software and hardware, and businesses in possession of it.

The clock is ticking for anyone in retail who might utilise ESS software and hardware, as well as manufacturers of EPOS systems who create and sell ESS features. This equates to involvement in tax fraud, and is an offence committed when a person is knowingly concerned in the fraudulent evasion of tax or duty, by themselves or another person. This applies even if an individual gains nothing from their deliberate conduct.

HMRC has already begun to take action and on 18 May 2022, about 30 businesses across 9 counties, including some independent retailers were visited in a coordinated day of action against ESS.

On the same day, two men and a woman were arrested on suspicion of fraud offences and cheating the revenue in Nottinghamshire, as part of a criminal investigation into the alleged supply of ESS software. The suspects have been released under investigation.

This is only the first day of such action and further days are likely.

HMRC is urging anyone who has knowingly been involved to consider limiting their potential liabilities by contacting HMRC and asking to use the Contractual Disclosure Facility (CDF).

You can ask HMRC to consider you for a CDF contract by filling in the contractual disclosure form, CDF1You can use the CDF if you have deliberate behaviour to disclose which has led to a loss in any of the taxes, duties and payments administered by HMRC. You can disclose your deliberate behaviour in whatever capacity you have acted. If you make a complete, open and honest disclosure of all your deliberate behaviour, HMRC will not open a criminal investigation into your disclosure.

The legislation has built-in safeguards to protect any business, which may unknowingly possess ESS software, from penalties. If HMRC has reason to believe a business possesses ESS software, the first time this happens, the business is given a 30-day grace period to remove the software in order to avoid a penalty for possession. Businesses also have the right to appeal against penalties.

You can find out more about the CDF on GOV.UK.

For those who suspect tax fraud or avoidance by others, information on how to report a person or business can be found on GOV.UK.

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Nine food businesses served with food enforcement orders in November https://forecourtretailer.com/nine-food-businesses-served-with-food-enforcement-orders-in-november/ Fri, 10 Dec 2021 11:06:33 +0000 https://forecourtretailer.com/?p=18984 Food businesses across Ireland have been hit with Enforcement Orders in November for everything from cockroach infestation and food workers having to walk through sewage

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Food businesses across Ireland have been hit with Enforcement Orders in November for everything from cockroach infestation and food workers having to walk through sewage to failing to provide written allergen information to customers.

The Food Safety Authority of Ireland (FSAI) reported that eight Closure Orders and one Prohibition Order were served on food businesses during the month of November for breaches of food safety legislation, pursuant to the FSAI Act, 1998 and the European Union (Official Controls in Relation to Food Legislation) Regulations, 2020.

The Enforcement Orders were issued by environmental health officers in the Health Service Executive (HSE).

Closure Orders were served on four Dublin businesses under the FSAI Act, 1998 – namely Chaska in Custom House Square; Boba Bar in Parnell Street; Greenville Deli on Rathmines Road Lower; and an area of the Wok in Noodle Bar on Stephens Street Lower, all in Dublin.

Further Closure Orders were served under four businesses under the European Union (Official Controls in Relation to Food Legislation) Regulations, 2020, relating to Navan Soup Kitchen in Navan; the preparation and sale of sushi and sashimi at Karma in Balbriggan; the kitchen of Mitchell’s Bar in Carrigallen, Leitrim; and Healing With Hemp in Clones (under appeal).

One Prohibition Order was served under the FSAI Act, 1998 on Greenville Deli in Dublin.

Two prosecutions were taken by the FSAI in relation to Arrabawn Co-Operative Society Limited in Kilconnell, Galway; and the former quality manager of the business trading as Arrabawn, Kilconnell, Galway.

Enforcement

Some of the reasons for the Enforcement Orders in November include: an active cockroach infestation noted beneath food preparation tables and fridges; surfaces throughout the premises were food-stained and dirty; and defective refrigerated units.

In one case, a drain serving the kitchen and associated areas was blocked resulting in staff toilet overflowing sewage onto the floor, foul water was present on kitchen floor which appeared to have emanated from a grease trap; and food workers were seen walking through sewage and foul water, spreading it through the kitchen while food was being prepared.

Other orders were issued because written allergen information was not provided to consumers; procedures to control pests were not in place at time of inspection; and staff had not been provided with appropriate training and/or supervision. In one case,  high risk ready-to-eat foods were not maintained at refrigerated temperatures.

Dr Pamela Byrne, Chief Executive of the FSAI, said this month’s Enforcement Orders included several instances of staff not receiving adequate training in food safety practices, which then resulted in serious breaches of food law.

“Food businesses must ensure they have a strong food safety culture in place, including regular and ongoing training of both full and part-time staff,” she said.

“Food safety culture embeds best practice standards as a top priority in a food business and is reflected in how it does its daily work. Food safety is everyone’s responsibility in a food business and not just the business owner.

“There is a personal responsibility for managers and all employees to comply with food safety law at all times and in particular, ensure that all information and records provided to inspectors are truthful and accurate. There can be zero tolerance for negligent practices that put consumers’ health at risk and the FSAI and food inspectors will use the full powers available to them under food law if a food business is found to be in breach.”

Details of the food businesses served with Enforcement Orders are published on the FSAI’s website at www.fsai.ie. Closure Orders and Improvement Orders will remain listed in the enforcement reports on the website for a period of three months from the date of when a premises is adjudged to have corrected its food safety issue, with Prohibition Orders being listed for a period of one month. 

 

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