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Operation Festival: Fraudulent evasion of VAT and income tax

Appointment Type: Party appointed expert

Service Area: Criminal and Regulatory

Industry: Leisure, Media and Entertainment

Sub-category: Licensed restaurants

Litigation Type: Criminal

Size of Case: £500,001 - £2.5 million

HMRC investigation into a sole director/shareholder of a licensed Asian restaurant. Investigation identified that director kept two sets of books (1) which recorded the actual daily takings of the restaurant and (2) daily totals which were recorded on the restaurant’s VAT returns. Subsequent analysis of the various bank accounts held/associated with the director identified that he had another bank account where card sales were being diverted – this sales income was not declared for tax purposes. Director was subsequently charged with fraudulent evasion of VAT and income tax totalling c.£600k. The director pleaded guilty and was sentenced to three years. He is now subject of POCA proceedings – we were instructed to assess his Benefit & Available Amount.