Tax fraudsters back in UK

Posted: May 22, 2010 in Law & Disorder

A tax fraudster who fled Britain said she returned to UK because she missed Coronation Street and the weather. What a load of rubbish. She obviously found living in India harder than in soft touch Britain where the pavements truly are paved with gold for the fraudsters preying upon us.
Ilie

Rekha Parmar was a suspect in a £3.8m VAT fraud when she fled to India seven years ago. But she returned, and yesterday she and husband Jiva Parmar, who were jointly responsible for skimming £693,805 of prospective income from the state, before the scam was taken over by others, were jailed. Mrs Parmar (43) was jailed for three years and nine months and her husband (43) received a three-year and four-month sentence. Which equates to 18 months in real time then presumably they will get a free council house and unemployment benefit.

After launching the fraud, the Loughborough couple swiftly upgraded their home, moving from Bottleacre Lane to a larger property in Spruce Avenue in the town. They also privately educated their two children and spent £42,000 on a Mercedes sports car and two Lexus vehicles.

The court heard the scam was “carousel fraud” – a complicated type of cross-border tax evasion.

It began in 1998, when each defendant separately launched mobile phone wholesale businesses. Mrs Parmar was in sole charge of a company called AUM Communications, in Sweden, and Mr Parmar of Sphinx Ltd, Loughborough.

The scam involved Mrs Parmar’s business selling a consignment of Nokia phones to her husband’s firm VAT-free. VAT did not apply to some European countries, including Sweden.

In turn, Mr Parmar sold the phones to a legitimate Manchester-based business, Cellstar, which was unaware of the dishonest plot, and was charged VAT by Sphinx – which never passed on the cash to the taxman.

Cellstar then sold the phones to AUM Communications in Sweden, where VAT was not leviable.

The same or a similar consignment was again sold on to Sphinx, less VAT, and the cycle continued.

Some 13 dishonest deals were carried out.

The couple were arrested and questioned, but before being charged they fled to India in 2001. They split up two years later and Mrs Parmar went to Dubai.

Mr Taylor said: “It’s a mystery why they came back and a coincidence they returned at roughly the same time, she in August 2009 and he in September”. Ever heard of a scouting party Mr Taylor, one fraudster came back to see how pathetic the jail sentence would be before they both returned.

“In 2004 she contacted a solicitor asking for advice on how to avoid arrest on her return.”She said she was missing Coronation Street, the weather and the rain – but she still stayed away for a further five years.”

Mr Taylor said it was not known how much they individually profited or how they financed their time overseas. But the UK taxpayer is not going to see any of the £3.8m that’s for sure!

The court heard that after the couple fled, others took over the scam, which mushroomed to a £3.8m fraud. Those offenders were jailed for their part in 2003. Both defendants pleaded guilty to conspiracy to cheat the public revenue, between October 1998 and November 1999.

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