- Kyle McGinness and Leanne Moynes were directors of YSK Enterprises Limited, which imported vapes mislabelled as medical nebulisers
- The shipment was intercepted by Border Force in 2023
- The company owed HM Revenue and Customs (HMRC) more than £15 million in unpaid VAT, customs duty and corporation tax before going into liquidation in 2024
Border Force officers intercepted a shipment of 352,688 vapes addressed to YSK Enterprises Limited in Harwich in 2023, after goods labelled as nebulisers were found to be e-cigarettes.
YSK Enterprises Limited had imported large quantities of vapes from China between February and April 2023 but told HMRC it owed no VAT on the sales and failed to submit any corporation tax returns.
HMRC calculated that the company, directed by Kyle McGinness and Leanne Moynes, owed almost £15 million in unpaid VAT and customs duty, and a further £437,101 in corporation tax.
Moynes also failed to preserve the company’s accounting records, despite repeated requests from the liquidator. As a result, it was not possible for investigators to verify what happened to more than £1.6 million of the company’s assets, including land, machinery and vehicles.
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.
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.
Further Information
- Kyle McGinness is of Barnton Street, Glasgow. His date of birth is 6 January 2002
- Leanne Moynes is of Greenhill Street, Rutherglen. Her date of birth is 12 March 1989
- YSK Enterprises Limited (company number 11507938)
- Directors can find information about their obligations and responsibilities at the Insolvency Service’s Director Information Hub
- Further information about the work of the Insolvency Service, and how to complain about financial misconduct.