VAT Fraud

A builder from Kent has been jailed after his lavish lifestyle, built on the back of a £800k VAT fraud, was found to be on shaky ground.

Wayne Harrison’s illicit gains were spent on significant money transfers to Russia, designer jewellery and newly-built kitchen and conservatory that HMRC found evidence of, at the builder’s former home.

Harrison, 52, admitted submitting false VAT repayment claims for two companies he directed - David Charles Homes and Weybridge Homes – totalling £812,250 over a three year period between 2006 and 2009.

The deception was based on the premise that both companies were involved in new build properties, which are zero rated for tax purposes and meant Harrison could reclaim any standard rated payments.

In actual fact, the only building work carried out was to an unfinished property near Canterbury and extensive renovation of the house he has since left. The other claims were made up to illegally receive VAT repayments.

Investigations into the builder’s claims soon uncovered a web of deceit that included submitting fake invoices, and falsifying documents purporting to be from legitimate suppliers. He also reclaimed the VAT on bills he had not paid. It is thought that some of the money Harrison fraudulently obtained was used to purchase an apartment in Russia.

Harrison received a two and a half year sentence for two charges of cheating the public revenue at Canterbury Crown Court and was suspended from being a company director for five years. Upon sentencing, Mr Recorder Alex Milne QC said: ‘Your offending does strike at the heart of the taxation system, and I sentence you on the basis of loss to the taxpayer of £812,250. Your companies were validly registered [for VAT], but you became dishonest making fraudulent VAT refund applications.’

John Cooper, HMRC assistant director criminal investigation, said: ‘HMRC is determined to crack down on tax fraud, and investigate criminals like Harrison who are intent on stealing from UK taxpayers.’

Confiscation proceedings are underway to reclaim the ill-gotten gains from Harrison.