London-based Chyi Cheah, a Malaysian national, used a number of aliases to run cosmetics businesses which were supposedly importing and exporting beauty products to Europe from the Far East via the UK under the company names So Susan and Beauty Port Ltd.

Over a ten-year period between 2001 and 2011, she produced and submitted false invoices and shipping documents to support her claims for VAT repayments. But her companies were de-registered by HMRC when officers found she had vanished, becoming a ‘missing trader’ to avoid investigation.

Cheah was arrested when she returned to the UK from Malaysia in February 2014 and was later charged with offences under the Value Added Tax Act 1994. Forensic analysis of her computer revealed some genuine shipping documents but for small amounts, to increase the VAT she had been charged in an attempt to legitimise her claims.

HMRC said its investigation revealed the VAT repayments funded Cheah’s lavish lifestyle including her flat overlooking Regents Park in London and extensive world travel. Large sums of money were also sent to accounts controlled by her in the Far East.

Cheah pleaded guilty at Ipswich Crown Court and was sentenced to 32 months imprisonment. As part of the agreement a sum of over £750,000 was also paid back to HMRC in advance of sentencing. Cheah will be deported upon release.

Paul Barton, assistant director, fraud investigation service, HMRC said: ‘Cheah thought she could hide from HMRC and avoid the consequences of her fraud. She was wrong. She cheated the taxpayer out of hundreds of thousands of pounds which should have been spent on essential public services and is now paying the price as she starts her jail term.’

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