United Kingdom - Man stole million in VAT fraud case

A Hounslow man has been jailed for seven years for evading £4.5 million in VAT.

Harjit Singh Takkar of Lampton Park Road was sentenced at Guildford Crown Court last Thursday. He pleaded guilty to conspiring to cheat the public revenue and fraudulent trading.

The court heard that, between May 2004 and August 2004, Mr Takkar trading as Hi-Profile, made purchases of mobile phones and computer chips from suppliers in France. These items did not attract VAT as they were imports. The phones and chips were then sold on, usually the next day, to a further company who, in turn, sold the items on to numerous other companies.

Enquiries showed that these companies were then exporting the phones and chips, usually to Dubai. This resulted in a further loss of revenue as tax was being reclaimed by the exporter. In one instance an export was traced to a German company from whom Takkar's suppliers had allegedly purchased phones.

Assistant director criminal investigation south Steve Baker speaking after the case said: "We are absolutely delighted with the outcome.

"The result sends a clear message to other criminals that we will pursue them and make sure they are brought to justice. Revenue and Customs are totally committed to tackling the organised crime groups who attack our revenue systems and steal money from the pockets of the honest taxpayer.

"These sophisticated and organised attacks cause severe harm to society, having an impact on everyone's lives by depriving the UK of funding for schools, hospitals and other vital public services. In addition to bringing these criminals to justice, we will also vigorously pursue the recovery of their criminally derived assets - wherever in the world they may be".