Glasgow directors disqualified over £15m tax evasion plot involving Chinese vapes
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Kyle McGinness and Leanne Moynes cannot manage, form or promote companies without court permission after more than 350,000 vapes were imported from China as medical nebulisers.
Two Glasgow directors have been banned from running companies until 2035 after more than 350,000 vapes were imported under the guise of medical equipment in a £15 million tax evasion scheme.
Kyle McGinness and Leanne Moynes were directors of YSK Enterprises Limited, which imported vapes from China between February and April 2023 and mislabelled them as medical nebulisers.
The operation was uncovered after Border Force intercepted a shipment in 2023.
It was then established that the company owed HM Revenue and Customs (HMRC) more than £15 million in unpaid VAT, customs duty and corporation tax.
YSK Enterprises Limited told HMRC that it owed no VAT on the sales and did not submit any corporation tax returns. Alongside £15 million in unpaid VAT and customs duty, a further £437,101 was owed in corporation tax.
The company entered liquidation in 2024.
McGinness, 24, of Barnton Street, Glasgow, was disqualified as a company director for nine years in June this year.
Moynes, 37, of Greenhill Street, Rutherglen, was also disqualified for nine years, with her ban coming into effect on Thursday 13 August.
Dave Magrath, Director of Investigation Services at the Insolvency Service, said: “Illicit and unregulated vapes are a growing problem on our high streets, putting consumers and legitimate businesses at risk.
“McGinness and Moynes went to considerable lengths to disguise what they were importing and then compounded that deception by telling HMRC they owed no tax at all.
“This was a deliberate attempt to avoid millions of pounds that should have been paid to the public purse.
“Director disqualification is one of the tools we use to protect the public and legitimate businesses from those who think they can operate outside the rules.
“By securing these disqualifications, we are making sure McGinness and Moynes cannot put other companies, creditors or consumers at risk in the same way.”
Investigators were also unable to verify what happened to more than £1.6 million of the company’s assets, including land, machinery and vehicles, after Moynes failed to preserve its accounting records despite repeated requests from the liquidator.
Richard Hopwood, Head of Insolvency Profession at HMRC, said: “We are determined to allow honest businesses to thrive which is why it's crucial we work closely with the Insolvency Service and other partners to take action against anyone that undermines the tax system.
“The majority pay the tax that is due, but we will work with partners to pursue those who refuse to play by the rules.”
Phillip Holliday, Head of Central Region at Border Force, said: “Criminal gangs peddling illegal vapes and tobacco undercut honest businesses and blight our high streets.
“This case highlights the vital role Border Force plays in clamping down on this illicit trade. Through our intelligence-led enforcement action, we are protecting communities, levelling the playing field for business, and disrupting organised crime.”
The disqualifications prevent McGinness and Moynes from managing, forming or promoting a company without the permission of the court.