VPDS143010 | Vaping Products Duty and Vaping Duty Stamps: Duty stamps - approval: Fit and proper considerations: Evidence of illicit trading

When making a decision to approve an application or allow an existing approval to continue, you must base your decision on sound, disclosable evidence. This evidence must support the conclusion that the applicant or business poses a serious threat to the revenue.

When assessing the fit and proper status of any key persons (for example, directors, partners, beneficial owners, or other controlling individuals), consider the following types of evidence:

• assessments for duty-unpaid stock or under-declared tax, indicating a risk the business may trade in duty-unpaid alcohol, tobacco, or vapes

• seizures of goods or assets

• penalties for wrongdoing or civil penalties suggesting a disregard for tax obligations

• trading with unapproved persons

• evidence of fraud

• serious non-compliance with other tax regimes

• previous refusals or revocations of approvals under this or other regimes (for example, liquor licensing), including confiscation orders or recovery proceedings under the Proceeds of Crime Act

• disqualification of key persons as company directors under company law

This list is not exhaustive. Other types of evidence may be relevant depending on the specific circumstances of the case.

You must inform the business of any evidence that forms the basis for a refusal or revocation decision.

• do not rely on any evidence that has not been disclosed to the business

• ensure that all evidence used is suitable for disclosure at tribunal

There is no fixed legal or published timeframe for how far back you should look when considering relevant non-compliance (for example, assessments, seizures, penalties). However:

• (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

• use your own judgement and assess each case on its own merits, taking into account all relevant facts