Contents 1. Introduction 2. Background 3. Personal information & residence 4. Financial information 5. Improper actions 6. Tax residency 7. Conclusions 1. Introduction 1. Pannu Tax Ltd were instructed by Hot Pancakes Ltd (“HPL”), to prepare a document on the tax position of Amber Murphy (“AM”). Scope of review 2. The purpose of this document is to review the activities of AM, based on the knowledge and understanding of the work performed by AM for HPL, together with other relevant documents and information. 3. The information was gathered from a combination of fact-finding discussions with and from analysing all of the relevant and available documentation provided to us. The facts were then considered in the light of the relevant UK tax legislation and case law to inform our conclusions and recommendations. 4. We can confirm that all the documents referred to in this report have been obtained lawfully and have also been presented as part of ongoing court proceedings Purpose and tax issues 5. Through the process of defending various legal actions (which are referred to below) and undertaking investigations in connection with those claims, it has become evident that there are a number of issues identified which may affect the UK tax position of AM. 6. Given the nature of the allegations made against HPL, all of which are unfounded, professional tax advice has been obtained. Based on the advice received, HPL does not have any tax issues in the UK and the actions being taken are aimed at avoiding any negative consequences for HPL. 7. Consequently, wishes to bring these matters to the attention of the United Kingdom tax authorities, HM Revenue and Customs, to ensure that any taxes payable in the United Kingdom are correctly declared and paid. 8. Based on the information available to and previous dealings with AM, it is evident that AM has not declared her income or paid the relevant taxes in the UK. Republic government. An official certification from the Dominican Republic Immigration Authority confirms that her documents are forgeries. 31. While the Commonwealth of Dominica passport is a legal document the holding of a passport does not determine where a person is resident or where taxes should be declared and paid. There is no evidence that AM ever resided in the Commonwealth of Dominica. 32. We can therefore conclude that AM has never resided in the Commonwealth of Dominica. It can, however, be concluded that in presenting false documentation to the authorities and the bank etc. AM has sought to mis-represent the facts in order to falsify her tax and residency status. 33. Based on his knowledge of AM, the work undertaken and her movements, is strongly of the view that AM should be regarded UK resident throughout. 4. Financial information 1. Until 2017 AM was working as a freelancer/ghost writer and would have been engaged through platforms such as Upwork.com and Freelancer.com. Payments would have been made via these sites and they would then pay AM directly. As such HPL do not have details of direct payments to AM for services provided. 2. From 1 June 2017 until 10 June 2020 a Nominee Agreement between and AM on behalf of HPL was signed on 1 June 2017 in respect of the operation of an account with EFG Bank based in Switzerland. 3. From 2017 until March 2020 , AM had access to three company credit cards issued through EFG Bank and these were used to fund her personal and private expenditure. This is discussed in more detail below. Bank accounts operated 4. is aware of two UK accounts and an account in Portugal operated by AM and these are as follows: Nationwide Building Society account 5. Nationwide have confirmed that the account was opened on 16 October 2008. A copy of a letter dated 10 October 2016 from the bank and a copy of a bank statement dated 1 9 October 2016 are both held at Appendix 9 . The bank has confirmed that the average daily balance was £183,915.92. The statement shows the purchase of NS&I bonds for 5,000.00 and various credits from NS&I bonds, indicating that the total value of the bonds held at that time was over £400,000.00. Barclays Bank account – Account information not available 6. A copy of a redacted bank statement for the period 1 August 2012 to 30 April 2013 is held at Appendix 8 . The account number is also redacted but the account was used for direct debits and to pay certain fees and a payment to a UK local authority, suggesting she was residing in the UK at that time. Banco BPI SA – IBAN 7. Also held at Appendix 10 is a copy of a bank information from Banco BPA SA who are based in Portugal. The account is held in the name of Amber Louise Murphy. 8. No further information is available for this account Authorised Credit Cards 9. As noted above, AM had the use of three HPL company credit cards from 2017. These cards were used to fund AM’s personal expenditure and authorised personal spending of up to $3,000 per month. Details of the credit cards are as follows: • 10. Sample copies of statements are attached at Appendix 11. 11. The majority of the expenditure on the credit cards was for business expenses but AM withdrew cash and made direct personal payments up to the authorised personal spending limit each month. Unauthorised Credit Cards 12. It appears that AM obtained and used a credit card linked to HPL with Payoneer, without authorisation from HPL. 13. HPL is in the process of obtaining evidence of the use of the Payoneer credit card via subpoena from the Seattle, WA, USA court. The card and the account are suspected to have been used for receiving and laundering money illegally transferred from HPL’s accounts, an offence included in the list of the Arrest Warrant referred to above. Conclusion 14. estimates that AM received payments for services of at least $265,000 15. The estimated amounts received by AM from HPL can be summarised in the table below: Source Period Amount Freelance work 2012 - 2020 $265,000 Authorised credit card payments 2012 - 2020 Included above Unauthorised credit card payments 2017 – 2020 Under investigation Portuguese property 2017 € 585,000 Portuguese rental income 2017 - 2020 Unknown Unauthorised withdrawals July 2020 $45,000 Payment of legal fees October 2020 $150,000 Total (Minimum) $1,150,000 16. The above represent significant amounts that have not been subject to tax in the UK. 17. AM declared, in a sworn affidavit filed before the Supreme Court of the Bahamas in September 2020 ( Appendix 12 ), that her monthly living expenses amount to $42,000 (forty two thousand USD ). Therefore, it is evident that she has other substantial sources of income 5. Improper actions 1. The investigations undertaken to dispute the claims made by AM have identified a number of issues. 2. Although some of these matters are not directly relevant to the UK tax position of AM, it does appear when reviewed as a whole, the approach AM has taken with regard to her personal and financial affairs. 3. AM has launched a multi-jurisdictional attack to HPL with the fraudulent intent of proving to be its real owner and thus appropriating its assets. She has designed a plot based on her, albeit partial, understanding of the company’s legal structure and business operations. 4. In order to avoid personal service of legal documents and her arrest, she has refused to disclose her physical whereabouts. 5. She has produced forged government IDs, forged utility bills to prove her false residential address, forged contracts to prove the ownership of HPL. 6. AM’s wrongdoings are listed in the Bahamas Warrant of Arrest and in the Cyprus criminal complaint. 7. In summary, AM is unknown to HMRC and any other tax authority, despite being a UK citizen and resident. Her physical whereabouts is unknown. She has managed to hide all her income and assets for several years through fraudulent and indeed criminal actions, which have culminated in the attempt of stealing the ownership of HPL and its assets. 8. AM’s conduct over the years demonstrates a criminal intent and has taken deliberate action to avoid paying relevant taxes. 6. Tax residency 1. The period over which AM received payments from HPL cover both years where the Statutory Residence Test would apply and the old rules. Pre-Statutory Residence Test – to 2012/13 2. Prior to the introduction of the Statutory Residence Test (“SRT “) from 2013/14 there was no statutory guidance and the test of residence was based primarily on case law and HMRC practice. 3. One of the many factors that determine an individual’s residence is the number of days they are physically present in the UK at present in the UK for 183 days or more during a tax year. 4. An individual may also be resident in the UK if they are present fewer than 183 days in a tax year. This will depend on how often and how long they are present in the UK, the purpose and pattern of their visits and their connections to the UK. This may include the location of their family, their property, their work life balance and social connections. 5. It is evident from the review undertaken that the following applies to AM: • Lived in the United Kingdom and lives with her parents at ; • Maintained bank accounts in the UK; • Paid living expenses commensurate with residence in the UK (e.g to Local Authorities); • Provided services for HPL from the UK; and • Undertook social activities in the UK. • also understands th at AM manage s a Hare Krishna sect in the UK. The sect has a presence in Bushey, where AM is known to have resided, and it is believed that AM holds an executive role in that organisation. The correspondence address for that organisation is a PO Box address, also in Bushey 6. In conclusion it is evident that AM was ordinary resident in the UK up to 2012/13. Statutory Residence Test – 2013/14 onwards 7. The SRT was introduced in Finance act 2013 with the changes coming into effect from 6 April 2013 for the 2013/14 tax year. 8. Individual will be resident in the UK for tax year if none of the automatic overseas tests are met and one of the UK automatic tests, or, the sufficient ties tests are met. 9. As noted above there is no evidence that AM lived anywhere other than the UK and as such the overseas tests would not be met. 10. It In absence of any evidence of occupation overseas, AM would be considered resident in the UK because as it is likely that the Automatic UK tests would apply. 11. If, in the unlikely event the Automatic UK tests did not apply, AM would be regarded as UK resident under the ties tests set out in the Statutory Residence T. In particular the following should be noted: • UK citizenship; • Family ties; • Accommodation tie (as she either owns a property or lives with her parents); • It is likely AM has spent more than 90 days in the UK; • Personal connections and background; • Financial connections and the operation of UK bank accounts; • Work undertaken for HPL in the UK; and • The connection and significant work undertaken for the Hare Krishna sect based in Bushey 12. Based on a review of the fact and documentation, together with the actions taken by AM, as described above in this report, it is likely that AM would be regarded as UK resident for tax purposes and her worldwide income should be taxable on an arising basis. 7. Conclusions 1. Based on the information available we can conclude that AM was UK resident throughout the period 2012 to 2020. 2. It is also evident that AM has provided false documentation and made false declarations regarding her residence and her financial affairs which we believe amounts to fraudulent conduct. 3. AM is the subject of legal action and this is still to be determined by the courts. 4. As the transactions affect the UK tax liability of AM we wish to bring these matters to the attention of HM Revenue and Customs. 5. In order to treat all taxpayers fairly and equally we would request that HM Revenue and Customs fully investigate these matters and take appropriate action against AM for failing to notify her chargeability to tax in the UK. 6. If we can be of any further assistance in progressing matters we wish to co-operate fully with the HM Revenue and Customs to provide any further information or documents in their power or possession or provide formal witness statements or further clarification on the matters set out in this report.