Fraudsters sentenced to 133 years inside

Date: 2nd October 2008

A group of VAT fraudsters have been sentenced to a total of 133 years in prison after committing a series of complicated scams.

HM Revenue and Customs (HMRC) prosecuted the 21 individuals involved for a "missing trader" scam, which saw the group manipulate VAT systems to make substantial profits.

The scam operated by importing mobile phones from the EU VAT-free, before exporting them back again and falsely claiming back duties. The company that imported the product would then dissolve without paying its VAT liability.

HMRC's deputy director of operations for criminal investigation, Chris Harrison, said: "This was not a victimless crime, but organised fraud on a massive scale perpetrated by criminals bent on fast and easy profits at the taxpayer's expense."

With this case, HMRC says it hopes to send out a strong message to others who hope to get away with such illegal operations.

Paper self-assessment tax returns need to be filed with HMRC before the end of the month (October 31s), while those submitting online have until January 31st.