HM Revenue & Customs (National): £2 million VAT fraud brothers jailed

Two brothers, who stole more than £1.6m through tax fraud and by stealing from their employees to finance their luxury lifestyles, have been jailed at Croydon Crown Court today for six years, following a complex investigation by HM Revenue & Customs (HMRC).

Haris and Adam Mukhtar, from Ilford, made £1.3m worth of fake VAT claims for various bogus companies, from chauffeuring to importing rice. Haris Mukhtar also told 200 of his own staff that £330,000 cash taken from their debit and credit cards was for national insurance and tax payments; Haris, described in court by the judge as “thoroughly dishonest” and “totally bent”, pocketed some of the cash for himself. HMRC specialist investigators prevented a further £320,000 being paid in other fraudulent VAT claims.

Haris and Adam bought themselves Lamborghinis and a hand-built Mercedes McLaren with their ill-gotten cash. The brothers, who shared a home, filled it with high-spec televisions, buying one for every room in the house.

John Pointing, Assistant Director of Criminal Investigation for HMRC, said:

"Criminals such as this are menaces who steal from honest taxpayers. HMRC is cracking down on fraud and the Government has made a further £900 million available to us for tackling evasion, avoidance and attacks by criminal gangs.”

Confiscation proceedings against both brothers are ongoing.

Notes to editors

1. Details of defendants are:

• Haris Mukhtar, DOB 17/01/1971 of 86 Wanstead Lane Ilford, sentenced to six years imprisonment
• Adam Mukhtar, DOB 07/02/1982 of 86 Wanstead Lane Ilford, sentenced to 12 months imprisonment suspended for two years
• Both pleaded guilty to attempting to cheat the public revenue. In addition, Haris pleaded guilty to cheating the public revenue, money laundering and Fraud Act offences.

2. The brothers attempted to steal a total of £2 million; £320,000 of this was withheld by HMRC

3. If anyone has any information to report to HM Revenue & Customs (HMRC) about any individuals or businesses that may be evading their tax, please contact the Tax Evasion hotline by calling 0800 788 887 or via the website www.hmrc.gov.uk/tax-evasion.

Follow HMRC on Twitter @HMRCgovuk.

Contacts

NDS Enquiries 
Phone: For enquiries please contact the issuing dept 
ndsenquiries@coi.gsi.gov.uk