VAT fraud: 2 people have been jailed in the UK

By in

vatAccording to the HM revenue & Customs, Mohammed Sabir and his son Razwan owed over £60,000 in income tax and VAT. They did not declare their income from their Newport mini market, the Baneswell Express store over a six-year period as well as from three properties they own in Newport. Mohammed Sabir admitted failing to pay income tax and National Insurance totalling £30,645 and was sentenced to 13 weeks in prison and 13 weeks on licence. After sentencing, the recorder said that Sabir had undertaken the fraud deliberately and not negligently and he had attempted to minimise his knowledge in relation to the offences. Razwan Sabir received the same sentence after he admitted failing to register the business for VAT and failing to pay £23,666 in VAT as well as failing to pay income tax and National Insurance totalling £10,686. The recorder said that he did not accept Sabir was unaware of his responsibilities and that with a shop turnover of £17,000 per week he would have realised he had to account for tax and VAT and keep the business records, while the offences took place over many years. The figures show that tax fraud accounts for nearly half (44%) of all fraud reported in the UK – the highest level since 2007.