Tax Dodgers Jailed After £1.3 Million VAT Scam Busted
Two Midlands men have been locked up for nearly nine years after running a slick VAT evasion scheme that ripped off taxpayers to the tune of £1.3 million.
Sham Companies and Fake Invoices Exposed
Hifzurrehman Patel, 40, and Ehsan-Ul-Haque Dawood Patel, 46, built a network of front companies between 2014 and 2017. They claimed these firms produced clothing on their behalf to dodge VAT payments on the clothes they actually made themselves.
The scam was uncovered in December 2015 when an unannounced raid by a specialist rag trade taskforce, including HM Revenue and Customs (HMRC) officers, caught factory staff erasing clock cards and handing over false invoices during a surprise inspection at Midlands Trading Ltd.
Hard-Hitting Words from HMRC and CPS
Mark Robinson, Operational Lead at HMRC’s Fraud Investigation Service, said: “Hifzurrehman and Ehsan Patel launched a relentless assault on the tax system. They forged contracts and documents to dodge paying VAT – money that should have funded public services but instead went on flashy cars and property. Tax fraud isn’t a victimless crime. It hits public services and gives cheaters an unfair edge over honest businesses. Anyone with info on tax fraud can report it to HMRC online.”
Paula Lloyd, Specialist Prosecutor from the Crown Prosecution Service, added: “While honest firms paid their dues, these criminals enjoyed a cushy lifestyle on the hard work of taxpayers. We are determined to confiscate assets bought with their dirty money and make sure tax dodgers face the full force of the law. This conviction should serve as a warning to others.”
Additional Convictions and Money Recovery Underway
Three more accomplices were convicted. Pravinbhai Purshotam Valland, 54, received a suspended two-year prison sentence. Mohsin Dawood Patel, 42, and Munaf Yusuf Banglawala, 62, will be sentenced on 21 June 2024 at leicester/" title="Leicester" data-wpil-keyword-link="linked">Leicester Crown Court.
Authorities have launched efforts to recover the stolen millions.
