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Former BHS boss convicted of tax evasion

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Dominic Chappell, who bought BHS for £1 in 2015 has been convicted of tax evasion. HMRC’s criminal investigation found that Chappell had deliberately evaded VAT and corporation tax and had also failed to disclose dividend income. According to HMRC, he failed to submit VAT returns for a 17-month period from March 2015, evading £343,511, and the company’s sales invoices totalled £2.3 million, meaning he was liable for £351,944 in VAT (he paid just £8,433).

He also paid just £10,000 of £164,064 in corporation tax due, and neglected to notify HMRC of a £330,000 dividend paid to him through his personal service company. Southwark Crown Court heard that, despite mounting debt, Chappell splashed out on luxuries including yachts, expensive cars, and holidays.

Simon York, director of HMRC’s fraud investigation service, said: ‘This was deliberate theft from UK citizens. Chappell was a high-profile businessman who knew tax had to be paid on his income and profits but chose not to do so. That’s money that should have been supporting our vital public services instead of funding his lavish lifestyle.

‘Today’s result sends a clear message to the minority who commit tax crime that no matter who you are or what resources you have at your disposal, no one is beyond our reach.’

Issue: 1509
Categories: News