HMRC has announced that two men have been arrested in connection with a suspected £2m VAT fraud connected to the transport industry in Northern Ireland and the Republic of Ireland.

Yesterday HMRC officers searched business and private addresses in counties Down and Tyrone where they seized cash and business records relating to the fraud.

Both men were questioned by HMRC and have been released on bail. Investigations are continuing.

John Whiting, HMRC assistant director for criminal investigation, said: 'HMRC takes tax fraud extremely seriously and anyone deliberately choosing to evade the taxes they owe should expect not only a heavy fine, but possibly a criminal prosecution as well.'