Dennis Lunn, known as Christopher, ran the practice whose 7,000-plus clients included many household names from the media and entertainment worlds. He qualified with ICAEW in 1970, but his membership lapsed in 1995 and he was made bankrupt that year. Lunn was discharged from bankruptcy in October 1998.

In 2010 the firm’s premises in Crowborough were searched and Lunn was arrested. HMRC said it uncovered evidence of a range of serious offences, which included the inflating of accountancy fees and the fraudulent use of trading losses, which the tax authorities alleged were all intended to help Lunn and his clients evade paying tax.

Lunn stood trial at Southwark Crown Court in September 2013, charged with six counts of cheating the Public Revenue. In January 2014, Lunn was acquitted on two charges while the jury was unable to reach a verdict on the remaining four.

However, HMRC conducted a further five years of detailed investigation, and Lunn has now been convicted at the retrial, where a jury found him guilty of four counts of cheating the Public Revenue. He will be sentenced on 6 January 2016.

Jennie Granger, director general, enforcement and compliance, HMRC said: ‘Lunn believed he could make up fraudulent claims to benefit both himself and his clients. Hard work from HMRC officers across the department proved him wrong. This long-running investigation has already recovered £20m, as Lunn’s former clients settle their tax liabilities, with more to come.

‘I hope this result serves as a reminder to those who try to cheat the public purse – particularly those in the tax profession – that no one is above the law and that HMRC will relentlessly pursue tax evaders to bring them before the courts.’

HMRC says that as Lunn’s clients were unaware of his actions, they have been offered a chance to put things right for themselves, by paying any tax and interest due. Any client who has not yet come forward pending the outcome of the trial is encouraged to speak to HMRC to bring their affairs up to date as many of Lunn’s clients have already done.

Lunn's son, Christopher Lunn (Jon), a former soldier who was not a trained accountant, also worked at the firm as a tax adviser. He was convicted in December 2014 on six counts under the Fraud Act, after he had sent false invoices to HMRC to try to cover up the fraud in the practice. The court in his trial heard that clients were given one low-cost bill for accountancy services (which are tax deductible), but these bills were increased when their accounts were submitted to HMRC.

On 11 June 2015, Baker Tilly Restructuring and Recovery LLP were appointed as liquidators for Christopher Lunn & Company Ltd. Prior to liquidation, the company submitted its last annual return made up to 17 March 2014 on 20 November 2014.

The Christopher Lunn & Company website at www.christopherlunnandcompany.co.uk is still operational, although the firm is trading as FTR. A spokesperson at FTR told Accountancy that 'we've got no comment, thank you'.

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