Ex-BHS Boss Dominic Chappell Jailed for Six Years Over £584k Tax Scam
Former BHS Owner Dodged VAT and Corporation Tax
Dominic Chappell, who controversially snapped up BHS for just £1 back in 2015, has been locked up for six years after being found guilty of evading £584,000 in taxes. The 53-year-old from Winterborne Clenston was slammed after HM Revenue and Customs (HMRC) uncovered his deliberate attempts to dodge VAT and Corporation Tax through his personal company, Swiss Rock Limited.
Massive Tax Avoidance Uncovered by HMRC
HMRC’s probe revealed Chappell failed to file VAT returns over 17 months starting March 2015, dodging £343,511 in VAT. Swiss Rock’s sales invoices hit a whopping £2.3 million, which should have resulted in £351,944 VAT payments. Instead, Chappell coughed up a paltry £8,433. On top of this, he paid just £10,000 of £164,064 Corporation Tax owed and kept hush on a £330,000 dividend through Swiss Rock, which went bust in 2016. That dividend alone cost the taxman £86,163 in evaded Income Tax.
Lavish Lifestyle Funded by Tax Cheats’ Cash
The court heard Chappell blew the tax-free windfall on yachts, luxury cars, and holidays, living large while stiffing the public purse.
“This was deliberate theft from UK citizens,” said Simon (surname withheld), Director of HMRC’s Fraud Investigation Service. “Chappell was a high-profile businessman who knew tax was due on his income but chose to ignore it.”
“That money should have gone to vital public services – not his lavish lifestyle. This verdict sends a clear warning: no one is beyond the reach of UK tax law.”
Trial and Verdict
Chappell had denied all charges at a hearing in June 2019 but was found guilty after a four-week trial at Southwark Crown Court. Prosecuted by the Crown Prosecution Service, he was sentenced on 5 November 2020. He will serve half his sentence on licence.
