In a joint operation with the UK’s HM Revenue & Customs, police officers from the Isle of Man’s Financial Crime Unit executed search warrants last week at premises connected with Montpelier Tax Consultants based in the island’s capital, Douglas. A number of documents are believed to have been seized during the raid.
Similar raids took place in the UK and one man, aged 60, was arrested in connection with the investigation.
A statement from HMRC said: “On 29 September, search warrants were served on premises in the UK and Isle of Man and a man, aged 60, was arrested in connection with an ongoing criminal investigation.
“The investigation centres around the suspicion that tax avoidance schemes (sold to over 600 subscribers) have been implemented fraudulently, with an estimated tax loss in excess of £90m. HMRC would like to thank the Isle of Man authorities for their co-operation and assistance in this enquiry.”
As reported, earlier this year a client of Montpelier lost a High Court battle to stop HMRC retrospectively levying taxes in relation to a scheme run by the Isle of Man based firm.
The Judge, Mr Justice Parker, ruled that the client, Robert Huitson, had taken out the scheme in the full knowledge he was avoiding tax and said HMRC had warned users of the scheme they may face a legal challenge.
