HMRC???s VAT Investigation unit will uncover all kinds of elaborate schemes to avoid paying tax. As a result of a high value VAT scam, a fraudster has to repay ??3.3 million which was stolen from the HMRC in tax. His luxury cars, his home and expensive watches will have to be sold to repay what is owed.
Robert Waterman is currently serving a prison sentence following a HMRC VAT investigation which followed a fake trade in computer memory sticks. His actions resulted in fraudulently claiming ??4.7 million in VAT repayments in a two year period between 2013 and 2015.
As a result, Mr Waterman must now sell a list of assets including his high end cars, his ??1.15 million home, other property and possessions to repay the money. The total amount has to be repaid in a period of three months. Failure to do so will result in a further eight years in prison. Waterman was sentenced at Chelmsford Crown Court in October 2016 for a period of six years.
??The fraud involved reclaiming VAT on memory sticks which had been sent to Dubai using his company Asset innovations UK Ltd. The HMRC investigation found that there were, in fact no memory sticks. Invoices had been created and empty parcels had been posted to a PO Box address in Dubai.
This fake trade was then used to make monthly VAT claims. He had additionally claimed ??530,000 which was stopped once the HMRC began to investigate.
Tax fraud is a serious offence and as this case goes to show, no matter what type of fraud is committed, it will be detected by the HMRC and prosecutions will result. VAT investigations will explore every aspect of your business. It is therefore important that you seek advice at the earliest opportunity and cooperate fully with the investigators.