Three found guilty of 'gigantic' VAT fraud

Three men have been convicted of setting up a series of non-existent small businesses in an attempt to carry out a very large VAT fraud.

The Press Association reported that the men - Abdul Koser, Taher Majid and Quentin Reynolds - set up an "extensive chain of largely fake companies" in their attempts for defraud HM Revenue & Customs.

Prosecuting QC Michael Parroy told London's Southwark Crown Court that the trio posed as importers and sold mobile phones to other companies and also to a series of "buffers" that were in reality no more than a "piece of paper at Companies House".

After nearly two weeks of deliberation, the jury decided that the men were guilty of planning on using invoices from a total of 41 front companies to "cheat the public revenue".

The men will be remanded in custody until September 12th, when they will be sentenced.

Recently, a small business owner was sentenced to jail for one year after failing to pay £71,229 in tax and national insurance.