I once read a story in the Yorkshire Post about the launch of Halifax's Intelligent Finance (ie IF.COM) quite a few years ago.
I can't 100% remember the details, and no doubt someone on here will know more about it, but here is the outline:
- They came up with the name...
- Some git had already bought the domain name
- Another clever bod said "Oh, let's just do a whois and send them an email"
- All attempts at contact failed (phone, fax, email, registrar, etc)
- They hired some "specialists"
- Said specialists spend days/weeks/(and maybe months) with their team sat around a bank of PC screens pressing REFRESH on the if.com website over and over and over and over again.
- Eventually the owner is roused, presumably by either his host, registrar or the bailiffs when they come round to collect the money for the bandwidth bill.
- The owner then enters into negotiation
- A fee of US$1m is agreed, but with some terms and conditions
- Someone is sent over to the USA to do the deal, which involves handing over the money in a suitcase to a bloke in a park
- The deal is done, and the domain is transferred.
- And IF.COM was born.
Quite how a venerable financial institution like The Halifax could get involved in something like that (the cash deal) is beyond me.
Getting back to the original post though....
I'd imaging that a lot of these deals are done for cash and, even if not, I doubt the Inland Revenue are aware of them.
There is a lot of scope for money laundering, particularly given the very subjective nature of valuations. If you are accepting large cash payments then you are meant to register with HMCE as part of the new anti money laundering legislation.
Agreed though, it's harder to do in the UK given Nominet's systems in respect of transfers.
