Jump to content
House Price Crash Forum

Property Pair jailed for £1m tax fraud


Recommended Posts

https://www.accountancydaily.co/property-pair-jailed-ps1m-tax-fraud

Quote

Two men who bought and sold over 50 properties but failed to pay nearly £1m in tax, have been jailed for more than eight years following an HMRC investigation.

 

Madhu Bhajanehatti, of London and Himat Chana, from Ilford, Essex, sold dozens of properties over an eight-year period, and evaded £991,000 in capital gains tax.

An HMRC investigation found that although the men disclosed some income on their self-assessment tax returns, they deliberately hid the sales of properties across London and Essex.

A specialist property taskforce set up to tackle fraud in the industry discovered the men had built up their property portfolios by using the proceeds of previous sales. Bhajanehatti evaded £650,000 in tax and Chana evaded £341,000.

Bhajanehatti admitted the fraud during a hearing at Southwark Crown Court in June 2019. Chana was convicted after trial in August 2019. Both have now been sentenced, with Bhajanehatti given a 50 months jail term and Chana sentenced to 52 months in jail.

Bhajanehatti was also ordered to pay back £190,086 in a confiscation order. He has less than three months to pay it back or he faces a further two years and six months in jail. Confiscation proceedings for Chana are on-going. If further assets are identified in the future for Bhajanehatti, they could also be confiscated.

Richard Wilkinson, assistant director, fraud investigation service, HMRC, said: ‘The duo believed they were above the law and showed a blatant disregard to their obligations by failing to declare substantial income from property sales.’

Must be tip of the iceberg, no doubt that there are thousands more that have evaded CGT but will HMRC get round to them or the more high profile cases. Where is the rest of the money? 

Link to post
Share on other sites
5 hours ago, ubuntu said:

https://www.accountancydaily.co/property-pair-jailed-ps1m-tax-fraud

Must be tip of the iceberg, no doubt that there are thousands more that have evaded CGT but will HMRC get round to them or the more high profile cases. Where is the rest of the money? 

Even if most slip through the net, it's a comfort to know some of these scumbags will be unable to sleep properly & will become Ill with anxiety.  Just Ill enough to feel wretched but not burden the NHS ideally..

Link to post
Share on other sites

As stated this is the tip of the iceberg, but surely all the data is still there to convict everyone or at least the majority?

 

Why not offer a company 10% of the recovered CGT in order to data mine the sales records vs tax statements?  

 

There would be no cost to the tax payer, only upside.

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.