Business fraudster ordered to sell house in landmark tax ruling

Date: 7th July 2008

In a landmark case, a businessman already convicted of tax fraud has been told his home could be confiscated.

The Scotsman reported that a judge has ruled that small business owner Michael Voudouri could have to sell his £1 million home to pay back money owed as a result of a major VAT scam.

According to the report, the Stirlingshire businessman was convicted of fraud in 2004 and served two years in jail. Authorities also looked to recover £1.3 million from the businessman.

However, he had argued that his home was actually owned by an overseas trust whose only shareholder was Mr Voudouri's father-in-law. As a result he had claimed this should not be deemed his property.

Now, a judge has ruled that Mr Voudouri was clearly in control of the home.

High Court judge Lord Coulsfield is reported to have said: "The Crown had shown to the judges satisfaction that the house was in the possession and control of the appellant and, in my view, it is clear that, in terms of the Act, that is sufficient to bring the property within the definition of realisable property."

A spokesperson from HM Revenue and Customs explained to the paper: "HMRC welcome this clarification of the law in relation to the confiscation of criminal property."

It is believed that Mr Voudouri made his money by committing carousel fraud. This involves a business buying goods from a European nation, charging customers with VAT and then keeping the money as profit.