In this month's roundup of cases and disqualifications, £175K tax fraud leads to 16-month jail sentence for business owner, seven-year ban over £500K VAT understatement, tax consultant jailed for £6.9m payroll fraud
£175K tax fraud leads to 16-month jail sentence for business owner
The boss of a clothing company who bought a house with money from a £175,000 tax fraud has been jailed for 16 months.
An HMRC investigation revealed that Pratap Modhvadia, from Leicester, deliberately hid company sales and lied about his role as director to evade paying VAT and corporation tax before stashing the proceeds in a secret bank account. HMRC uncovered the fraud after checks on another company’s tax returns raised questions about large payments made to Modhvadia’s firm, Fashion Nation Trading Ltd.
During the investigation officers found that Modhvadia had under-declared sales for Fashion Nation to evade paying VAT and corporation tax. He had a second company, Empire Clothing (Leicester) Ltd, with a separate bank account but he only told his accountant about Fashion Nation.
