There are important lessons to be learnt from HMRC’s unfortunate experiences when seeking to uphold search warrants and restraint orders in the Eastenders Cash & Carry case where an alcohol diversion fraud was suspected. HMRC must ensure they have sufficient evidence before applying for these invasive orders. Asserting suspicions will not, without supporting evidence, satisfy the Court that the threshold requirements have been met. Practitioners representing taxpayers can also learn from HMRC’s embarrassing dénouement. Sometimes a conciliatory approach is appropriate, but there are other cases where a more aggressive response is warranted. Eastenders Cash & Carry was one such case.
