Dominic Chappell Jailed for Six Years Over £584,000 Tax Evaded Following £1 BHS Buy
Ex-BHS Owner Caught Dodging Tax
Dominic Chappell, who bizarrely snapped up BHS for just £1 back in 2015, has been jailed for six years after being found guilty of dodging £584,000 in tax.
The 53-year-old businessman deliberately evaded VAT and Corporation Tax through his personal services firm, Swiss Rock Limited, while failing to disclose dividend income.
HMRC Uncovers Massive Tax Evasion
HM Revenue and Customs (HMRC) launched a criminal probe that exposed Chappell’s tax tricks. He failed to file VAT returns for 17 months from March 2015, evading a whopping £343,511 in VAT.
Swiss Rock’s sales invoices totalled £2.3 million, but Chappell only paid £8,433 of the £351,944 VAT he owed. On Corporation Tax, he paid a mere £10,000 of the £164,064 due.
Worse still, he hid a £330,000 dividend paid to him via Swiss Rock, which went bust in 2016, costing HMRC £86,163 in Income Tax.
Lavish Lifestyle While Dodging Taxes
Despite his mounting debts, Chappell splashed out on yachts, flashy cars, and exotic holidays, living large at taxpayers’ expense.
Simon, Director of HMRC’s Fraud Investigation Service, slammed the mogul: “This was deliberate theft from UK citizens. Chappell knew tax had to be paid on his income but chose not to do so. That’s money that should have been supporting vital public services instead of funding his lavish lifestyle.”
“Today’s result sends a clear message: no matter who you are, no one is beyond our reach.”
Denial Fails, Sentence Handed Down
Chappell denied all charges in a 2019 hearing but was convicted after a four-week trial at Southwark Crown Court. Prosecuted by the Crown Prosecution Service, the former Retail Acquisitions director was sentenced to six years in prison on 5 November 2020.
He will serve half of his sentence in custody before being released on licence.
