Westminster Council admitted that it is unlikely it can recover PS7.9m from missed business rates from 30 sweet shops with US themes on London's Oxford Street.
In the last six months, more than PS474,000 worth of illegal and counterfeit goods were seized from American candy shops.
The council stated that taxing shops would be like riding a "merry go-round", with companies popping up and then disappearing.
One of the chief officers of the council said that they were "a problem."
Martin Hinckley (Director of Revenue at Westminster City Council) stated that "To be truthful, they will never be in a position to pay business rates."
M. Hinckley spoke to the Local Democracy Reporting Service, (LDRS) and said that it was a "bit of a merry go-round." This will vanish if Oxford Street recovers, but until then, we're likely to have problems."
Enforcement officers found that shell companies without assets frequently own the license certificate for souvenir and candy shops.
To seize goods and get some of the money back, bailiffs can be sent to stores by the council.
The shops don't have the ability to resell sweets, as they sell many that do not comply with trading standards.
According to the Westminster City Council's trading standards, complaints include out-of-date food items and fake "Wonka" bars.
Officials announced last month that they had found nearly 4,500 disposable vapes. These devices were allegedly high in nicotine and not compliant with UK standards.
If more trustworthy brands return to the area, the council hopes that the shops will disappear completely from Oxford Street.
It has created a West End pop up scheme that offers landlords up to 70% off their business rates if they permit start-up businesses use empty shops.
According to the LDRS, the goal is to get landlords to stop housing sweet shops with US themes and to bring back shops of higher quality in central London.
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