It is common ground that HMRC has the power to seize or detain goods liable to forfeiture. However, HMRC considers that it even has the power to detain goods if it just has a good reason, and that a good reason includes investigating whether that stock is liable to forfeiture. In the opinion of the author, HMRC only appears satisfied by an unrealistic level of record keeping not officially required by them. A recent judicial review involving Millennium Cash and Carry has indicated that HMRC’s powers are open to challenge and may have been extended too far. At the very least HMRC accepts that active and diligent investigation is required throughout detention.
