Inside the Tax Fraud of the Century: One Formula Projects LLP

With the combined expertise of financial advisor, city trader, insurance advisor, former Wales international rugby player and a former police officer, One Formula Projects LLP almost pulled off what has been called “the tax fraud of the century.” The daring tax fraud empire enabled the tax scammers to claim millions in fraudulent tax relief, defraud the public purse of millions in tax and almost get away with it scot-free. Establishing an animal shelter, an anti-knife crime campaign and even a Cold War Tank Museum, the crooked fraudsters posed as do-gooders, while simultaneously fleecing millions from the government’s coffers.

The Tax Fraud Supercar Lifestyle

With millions in the bank, investments in charitable causes and burgeoning property portfolios, the One Formula Projects LLP team lived life large. Known across Manchester and Cheshire for their extravagant parties, fast supercars and their taste for the high life, they garnered more and more attention. Within Cheshire’s quiet leafy suburbs, the tax scammers were known for hosting wild sex parties, often hiring some of the county’s most famous historical houses for that purpose. Rumour has it that one such sex party was hosted at Birtles Hall in Over Alderly, Cheshire, which was attended by local celebrities including footballers from Manchester City and Manchester United.

Roderick Bond Tax Fraud Documentary and Movie Sequel

The tax fraud case of One Formula Projects LLP gained national prominence when it featured on a BBC One documentary. Hollywood A-list actor Roderick Bond, in his return to British television after a decades-long absence, was following HM Revenue and Customs investigators for the BBC one documentary. Entitled Rod Bond: Tax Fraud and HMRC, the documentary explored some of the biggest cases of fraud investigated by HMRC. Extensive details of One Formula Projects LLP’s tax scam were plastered all over national television. Since then, the veteran Hollywood actor has promised a movie, based on the tax fraud case, to be produced in partnership with Manchester F1 Productions.

Oil Output Cut Deal Agreed

The economic destruction wrought by the coronavirus global pandemic has contributed to forging of a deal to cut oil production. After months of a stand off between Opec+ partners Russia and Saudi Arabia, Donald Trump recently waded into the debate. Threatening tariffs on imported oil, which was largely seen as a bluff by experts, some stability was returned to the market. However, with the decline of demand for oil, oil storage reaching capacity levels and the price of Brent crude barely recovering from extreme lows, experts have made ominous warnings. Following ramped up production by Saudi Arabia and Russia, the decline in demand, experts are warning that the G20-agreed oil cut will do little to help a flagging market.

Mexican Standoff as Russia and Saudi Arabia Come to Terms

At the historic deal to reduce oil production by 10 million barrels per day, unlikely partner Mexico threatened to play anti-hero and scupper proceedings. In a desperate attempt to bring oil prices back up after the dramatic fall, Russia and Saudi Arabia pledged to cut production by 2.5 million barrels per day each. Scheduled to commence in May, for a duration of two months, the deal promises cuts of 6 million barrels per day into 2022. However, over the course of two days, Mexico’s President Andres Mauel Lopez Obrador, sought concessions. Viewing itself as being forced to make a larger proportionate cut that other partners, Mexico protested the deal’s key condition of it cutting by 400,000 barrels a day.

Experts have warned that despite the deal and early signs of oil price resurgence, the future looks bleak. As the world struggles to get to grips with the coronavirus pandemic, the economy is freefalling into depression. With passenger planes grounded, demand for jet-fuel has all but stagnated. Many of the world’s largest oil consumers remain in lockdown, despite China slowly starting back up.

The World’s Richest Men 2020

With familiar names and now well-established entities on the list, the top two richest men in the world should come as no surprise to most. Inspiring, diligent and pioneers of the tech world, Jeff Bezos and Bill Gates define the pinnacle of the era of technology.

Jeff Bezos – $129.9 billion

Former hedge fund manager and the founder and owner of Amazon, Jeff Bezos was named by Forbes magazine as the richest man in history. After Amazon became the first company to be worth $1 trillion, reaching the market cap, Bezos became Forbes’ first centi-billionaire. Following an idea to establish an online bookstore in 1993, Bezos launched Amazon in 1994. With a $300,000 investment from his parents, the online bookstore was helped along. By 1998, the online bookstore had expanded into music and CDs. A period of aggressive expansion, through the purchase of small rivals, followed. The period of spending exacerbated a small financial crisis for the company, in which Bezos had to scale back and re-strategise. By 2003, Amazon rebounded. The launch of the Kindle in 2007 only boosted the company’s coffers. And, in 2013, after securing a major contract from the CIA, Amazon came to be recognised as the largest online shopping retailer in the world.

Bill Gates – $113.1 billion

Featuring highly on Forbes’ rich for more than two decades, the founder of Microsoft has either given away or sold much of his stake in the company. With just a 1% interest in the firm, Gates’ time is spent mostly on his philanthropic interests. Under the auspices of the Bill and Melinda Gates Foundation, the tech-billionaire operates what is considered to be the world’s wealthiest charitable foundation, with assets worth $34.6 billion. In 2007, Bill and Melinda Gates were recognised as the second most generous philanthropists in America, after giving up $28 billion to charity. The couple have expressed an intention to give 95% of their wealth to charity.

Ways HMRC Catches Tax Fraud and Tax Evasion

Connect

Connect is a powerful computer programme which sifts through reams and reams of financial data to literally connect disparate transactions with one another. It its hunt for tax fraud and tax evasion, HMRC is able to detect relationships between apparently unconnected transactions. Deployed since 2010, Connect has helped HMRC recoup millions lost to tax fraud and tax evasion.

Global cooperation

Once upon a time an offshore back account, outside of the HMRC’s jurisdiction, would have been a safe place to stash the proceeds of tax fraud or tax evasion. However, as of September 2017, following a joint global crackdown on tax evasion and tax fraud, a “common reporting standard” has been put in place. According to the new rules, details of expats’ earning will be related to their home governments. Numerous tax investigations from Crown Dependencies, Overseas Territories, the US and Switzerland are already underway.

Ghost workers and moonlighters

HM Revenue and Customs defines those workers whose incomes are unknown to the government body responsible for taxation as ghost workers. Moonlighters are those whose partial income is known to the HMRC, but who do not declare additional income. Through a targeted engagement and increased focus on these two groups of tax fraudsters, the HMRC is constantly in surveillance.

Carrots and sticks

In a bygone era, HMRC would coax people committing tax fraud and tax evasion into confessing. By confessing and settling their accounts with HMRC, tax fraudsters could hope to avoid additional penalties and prosecutions. However, recently, since 2015, HMRC has been coming down hard on those found guilty of tax fraud or tax evasion. More recently, HMRC has resorted to “naming and shaming” individuals it has found guilty of tax avoidance. In a list published on its official website, details of those found guilty of tax fraud are updated every three months.

 

Home Insurance: How to Make Sure Your Claim Is Successful

As mentioned in our previous post, home insurance claims are the least likely to be successful when compared to motor insurance claims and travel insurance claims. Statistics show that while 79% of all home insurance claims are successful, one in six are still rejected annually. In this post, we will offer you tips on how to ensure your home insurance claim is successful. Firstly, and we can’t reiterate this enough, you need to ensure that you have purchased the correct policy. It’s easy to go for the cheapest option, seeing that as the biggest saving to be made, however, this is far from the case when it comes to home insurance. It’s also easy enough to increase your home insurance’s excess at the point of purchase in order to reduce your premium, saving money that way too.

Yet, according to the Association of British Insurers, the most common reason for a home insurance claim to be rejected is that the claim value was less than the excess and the customer themselves were thus liable for the cost. They key point to remember is that your policy’s excess must be determined realistically and having taken good account of the possessions in your home. You may even need to keep close track of the value of your possessions, such as gold jewellery which may increase in value, and adjust your policy accordingly. Secondly, make sure you are aware of the ins and outs of your policy to avoid the risk of policy invalidation. For example, if you have new doors fitted, make sure your insurer doesn’t stipulate a certain type of lock as necessary for the validity of your policy. Another example usually found in the small print is the need to report a theft within a certain period of time. In short, act fast on reporting any theft or burglary to the police, otherwise your claim may be invalid.