Man jailed for £2m VAT fraud

A MAN who pretended to trade in equine medicine and claimed to have a £25m bank balance, has been jailed after HM Revenue and Customs (HMRC) exposed his £2m VAT fraud.

Anthony Knowles, 57, of Clapgate Crescent, Widnes in Cheshire submitted several suspicious VAT repayment claims to HMRC in 2013 prompting an investigation.

During routine checks on Knowles’ VAT repayment claims, HMRC uncovered a myriad of false documents and lies.

The investigation revealed that he had provided officers with false paperwork, including bank statements, in a bid to convince them that his multi-million pound business was booming – despite it being run from his two bedroom council house.

Knowles also falsely claimed that his business was being financially supported by a sheik – who HMRC was never able to trace.

Sandra Smith, assistant director, Fraud Investigation Service, HMRC, said: “In this case, Knowles provided dozens of fake documents to convince HMRC he was genuinely trading as a multi-million-pound empire.

“Throughout the investigation Knowles made a number of outlandish claims to prove he was legitimate – but our officers saw through his scam.

“Knowles was attempting to steal a substantial sum of money from British taxpayers and his abuse of the VAT repayment system was ambitious to say the least.

“HMRC will now begin action to recover public finances stolen in this case under Proceeds of Crime legislation.”

After Knowles was interviewed by HMRC officers, in September 2013 his home was searched where HMRC investigator’s discovered forged bank statements – which were blank and ready for use, fake supplier invoices, digital copies of signatures to create false delivery notes and evidence of luxury spending.

A look into his financial affairs found he had attempted to buy a Cheshire mansion and farm, and received quotes for building a huge extension.

Knowles was sentenced to four years’ imprisonment at Liverpool Crown Court.