Tax Rebates & Refunds

Three men jailed for £300,000 VAT tax rebate fraud

February 10, 2013
Posted in Fraud, Tax Rebates — Written by Jennifer

Three men, one from Manchester and two from the West Midlands, have been handed jail sentences of up to three years after they were found guilty of taking part in a £300,000 VAT tax rebate scam.

Following an investigation by HM Revenue & Customs (HMRC), it was revealed that the three-man gang had been setting up fictional firms in order to claim back hundreds of thousands of pounds in fake VAT tax rebate claims.

In total, the men set up nine fake companies, including a publishing house, a software engineering company and a clothes manufacturer. They then submitted VAT repayment claims for each of the businesses, even though none of the firms had actually done any trading or brought in any revenue to justify the VAT claims.

At Birmingham Crown Court, two of the men were sentenced to 18 months in prison for their part in the fraud. The third man was given a 3 year prison sentence.

Commenting on the case was HMRC’s assistant director of criminal investigation Adrian Farley, who said:

“This case sends a clear 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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