Case details for Patrick William Galvin

Name: Patrick William Galvin

Name: MELKSHAM WHOLESALE & DISTRIBUTION LIMITED

Date of Birth: 22 / 1 / 1987

Date Order Starts: 27 / 6 / 2019

Disqualification Length: 9 Years 0 Month(s)

CRO Number: 08193254

Last Known Address: 10 Queens Gardens, , , , , BA14 7PU

Conduct: Between 01 March 2014 and 31 August 2014 I Mr Patrick Galvin caused Melksham to participate in transactions which HMRC established were connected with the fraudulent evasion of VAT, such connections being something I ought to have known about. 1. Although not being warned about VAT fraud prior to all the transactions under consideration taking place, I was aware, or ought to have been aware, that VAT fraud was problematic in the trade of wholesale alcohol in which Melksham engaged, because: - Prior to the transactions conducted in VAT accounting period 08/14 HMRC officers discussed MTIC fraud with me at a visit. I was issued with HMRC leaflet ‘How to Spot MTIC fraud’ and referred to Notice 726 section 6 regarding due diligence checks. Following this visit a MTIC warning letter was also issued by HMRC. - In March 2013, prior to the transactions in question goods were seized by HMRC officers with an excise duty value of £276,943. - Despite not being advised to complete due diligence checks prior to some of the transactions in question being completed, Melksham was aware of the need to carry out due diligence. 2. The trading in which Melksham was involved had features which, irrespective of the W5 duty payment documentation, should potentially have put me on enquiry about the legitimacy thereof, as follows: - Despite being involved in deals of a high value, no written contractual terms of trade are in evidence as would be expected for the majority of businesses carrying on normal commercial trade. - Despite the value of the goods being purchased and sold no insurance was put in place by Melksham. - The goods traded were not inspected for accuracy of order or damage. - There are discrepancies in the way some of the products have been described on invoices. 3. Despite being aware of VAT fraud in Melksham’s trade sector and engaging in transactions which, irrespective of the accompanying W5 duty payment documentation, had features which should potentially have put me on enquiry about the legitimacy thereof; I failed to ensure that Melksham carried out due diligence to a standard satisfactory to HMRC in respect of its trade and of its trading partners as follows: - The due diligence that was conducted could not have provided Melksham with adequate assurance that its transactions were not connected with fraudulent evasion of VAT and only confirmed that, at the time the checks were issued/received, the supplier and customer existed. - Melksham did nothing to confirm, via third party checks and reports that its supplier and customer were credible, solvent businesses that would honour their trading commitments. - Melksham did not make any enquiry of the warehouse or verify the authenticity of the W5 documentation, which HMRC established to have been falsified. 4. The trading chains in which Melksham was involved caused significant losses to HMRC. - Melksham’s sole supplier for wholesale alcohol, a connected company was subject to winding up proceedings in September 2015. - 11 of Melksham’s deals have been traced back to VAT losses of at least £399,840. - On liquidation Melksham owed HMRC £391,067 in respect of VAT. 

This information is correct as at 7 / 6 / 2019



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