Leicester textile firms 'involved in money laundering'
Leicester textile firms '''involved in money laundering''' - BBC News
Leicester textile firms '''involved in money laundering''' - BBC News
When Mr Nagra received an order from Select Fashion he would, unknown to them, arrange for the garments to be made cheaply by a so-called "cut, make and trim" (CMT) supplier.
He would pay in cash, and the transaction was hidden from his company's official accounts and records.
Recent news investigations have revealed how CMT workers in some factories are paid below the minimum wage for this type of work.
In the meantime, Mr Nagra would pretend the garments were being made by another company. He would place a fake order for the same goods with that company, which appeared to be a garment factory, but in reality was usually just a shell company.
The company would then provide an invoice at an inflated price, far higher than that really paid to the genuine CMT supplier who was making the clothes. Crucially, the fake invoice included a 20% VAT charge on top.
Mr Nagra would pay the inflated amount into the shell company's bank account. Almost immediately, the money would then be withdrawn from the bank account in cash and returned to Mr Nagra, apart from - typically - half the VAT, which would go to pay off accomplices.
He would pay in cash, and the transaction was hidden from his company's official accounts and records.
Recent news investigations have revealed how CMT workers in some factories are paid below the minimum wage for this type of work.
In the meantime, Mr Nagra would pretend the garments were being made by another company. He would place a fake order for the same goods with that company, which appeared to be a garment factory, but in reality was usually just a shell company.
The company would then provide an invoice at an inflated price, far higher than that really paid to the genuine CMT supplier who was making the clothes. Crucially, the fake invoice included a 20% VAT charge on top.
Mr Nagra would pay the inflated amount into the shell company's bank account. Almost immediately, the money would then be withdrawn from the bank account in cash and returned to Mr Nagra, apart from - typically - half the VAT, which would go to pay off accomplices.
Comment