| Comment | I reckon the dessert shops are laundering, but not in the 'cleaning dirty proceeds of crime' fashion. I guess they are used as a funnel to lower VAT liability from a second business.
These dessert places generally seem to be ran by a group of folk that run some other nearby business like a kebab shop a few doors away (or in one outrageous example on the south side ran by the same crew that runs a car wash). So, say the kebab shop or car wash turnover is £100k per year, they take 50k of cash and rinse it through the dessert shop. So, instead of 1 business with 100k turnover you have 2 with 50k turnover. At 100k turnover the business would need to be VAT registered, but 2 businesses at 50k turnover don't need to register for VAT.
That's my theory on it anyway. Might be wrong as fuck. |
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