HMRC – A Case for a Disaster Recovery Plan?

04 August 2010

The powers of HM Revenue and Customs (HMRC) are considerable, as a recent case makes clear. It involved a company that HMRC suspected of Excise Duty evasion. A raid on its premises was undertaken and HMRC officers found quantities of alcohol for which there appeared to be no records of purchase. The officers seized the goods as well as computers and papers belonging to the company and also private papers.
HMRC held the computers and the papers for a week.

The company went to court, alleging that the seizure was unreasonable and that the length of time HMRC retained the computers and other material was excessive. The court gave the claim short shrift, agreeing with HMRC’s contentions that:

• it was reasonable to assume that the private papers may contain relevant information about the business;
• the return of the private papers had been prioritised;
• the claim that the computers should not have been seized was unreasonable; and
• given the volume of papers etc. seized, retention for a week was not unreasonable.

A seizure such as this, or a natural disaster such as a flood, can prove catastrophic for many businesses and having a disaster plan in place is a wise precaution. We can assist you with minimising legal risks.

For more information on this subject or any other legal matter,
please contact us:

Tonbridge: 01732 770660
Sevenoaks: 01732 747900
Email: marketing@warners-solicitors.co.uk