Tax Rebates & Refunds

Company boss charged with tax fraud in Leicester

December 27, 2012
Posted in Fraud — Written by Jennifer

A businessman from Leicester has been charged and sentenced after he submitted false VAT returns and illegally claimed more than £40,000.

38-year-old Abdulkadar Chokhandiwala is understood to have conducted the illegal activities whilst working as the director and company secretary of KGN Supplies Ltd. The company traded as Phone Bazzar and was involved with purchasing mobile phone handsets and exporting them to Dubai.

Mr Chokhandiwala reportedly submitted false VAT returns to HM Revenue & Customs (HMRC) in order to claim tax rebates on VAT the business hadn’t paid at all. The business would have been able to legitimately claim back VAT on handsets that it had exported if it had actually paid the tax, but in this case, the company failed to pay VAT yet still put in tax refund claims for around £40,000.

After pleading guilty to three counts of VAT tax fraud, the businessman was handed a 12 month prison sentence, suspended for 12 months. Mr Chokhandiwala was also ordered to complete 180 hours of community service.

Gary Lampon, HMRC’s assistant director of criminal investigation, commented on the outcome of the case, saying:

“This action sends a firm message to anyone involved or considering fraud against HMRC – your time is up.

“We are working relentlessly to combat those involved in tax evasion and fraud and bring them before the courts.”

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