We have given here a list of the UK’s biggest and top tax evasion cases here.
Dominic Chappell, a UK top businessman who bought a UK based retailer BHS from Philip Green for £1 in 2015, then jailed for six years after found convicted of tax evasion.
Prosecutors told the trial that he picked to evade paying corporation tax, income tax and value added tax on £2.2m of income which he and his companies received from the acquisition of BHS.
Facts of the Case:
- During a 17 month period, sales invoices for this period totalled 2.3m resulting in tax liability for a VAT payment of £351,944. Chappell only paid £8,433.
- Furthermore, Chappell failed to inform HMRC of a £330,000 dividend he received from Swiss Rock Ltd. He also only paid £10,000 in corporation tax, a small fraction of the £164,064 he owed.
Simon York, a director of fraud investigation services at HM Revenue & Customs, said that: “Chappell a high-profile businessman who knew to pay tax on his income and profits but chose not to do so,”.
Perhaps it is not the largest tax avoider but is an important lesson for all taxpayers.
It is matter of year 2011, when a former Business Secretary failed to inform his tax authority HMRC that his income crossed the VAT threshold.
Reason behind the exceeding of income from VAT threshold was a book deal and regular media appearances had taken his business earnings from £65,738 to about £192,000.
It is to remind here that if your revenue exceeds the VAT registration threshold (£85,000 as of 2019/20), then you have to register within 30 days.
Interestingly, Cable admitted his this mistake and faced a penalty of £500.
Gary Barlow, Howard Donald and Mark Owen, and manager Jonathan Wild were among those 1,000 people who put money into schemes supporting the music industry.
Tribunal Judge Colin Bishopp ruled the partnerships which actually formed for tax avoidance purposes.
Money invested through a company called Icebreaker.
The scheme known as ‘Icebreaker Management’ and it allowed the artist to avoid a significant portion of his tax responsibility.
As a consequence of this mistake, Barlow and his companions then ordered by HMRC to pay £20,000 in June 2016. While he has since apologised.
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A company director, Sumair Iqbal jailed for fraudulently evading tax of around £100,000.
The Crown Prosecution Service (CPS) said that Sumair Iqbal, evaded the tax by massively underestimating the turnover of his two security firms.
Sumair Iqbal, was the director of Pulsive Security Solutions and Correx Consultants. Two Liverpool-based companies that provide services of security guards and other security services for companies across the country.
Sumair Iqbal told HM Revenue and Customs (HMRC) that Between June 2012 and May 2017, the two companies had a turnover of about £249,292. In Actual, it was four times that amount.
Jimmy Carr was pointed out by the media for his involvement in an offshore wealth management scheme in 2012.
The comedian’s tax evasion case revealed that of the £3.3 million. He was sheltering in the organisation, he was only paying 1% tax. According to Prime Minister David Cameron, who called Carr’s thi act “morally wrong”.
It caused a huge hit on Carr’s popularity. It led to a tense episode of the television show ‘8 out of 10 cats’.
Jimmy Carr’s ribbing on ‘8 Out of 10 Cats’ saw the Channel 4 comedy show attain its highest ratings in more than two years.
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It’s a tax story of Superstar footballer David Beckham. He may not have been the only individual to be penalised by having to pay his share of a £700 million tax bill in this particular case, but he was certainly one of the biggest names attached.
Celebrities were attracted into investing a minimum of £100,000 to energizing British film, and were offered tax breaks in return.
But, tax tribunal judge Charles Hellier ruled that the schemes were not legal investment opportunities. He sustained the decision to order the celebrities to pay the fine along with interest.
Former England footballer David Beckham was finally given a green signal in tax avoidance case. That had faced a knighthood for the past several years.