Two businessmen from Hampshire, who ran pizza franchises in the South of England, have been jailed for a £600,000 VAT fraud. The men were franchisees of Pizza Hut UK Ltd and operated four takeaway restaurant outlets by the name of Pizza Delivery Services Ltd, trading from October 2002 to September 2011.
An investigation by HM Revenue and Customs (HMRC) found that although the company was registered for VAT, the men only declared their takings from three out of four of the outlets.
HM Revenue and Customs (HMRC)’s investigation found;
• Pizza Delivery Services Ltd suppressed the turnover figures from 1 July 2007 to 30 June 2010. There were differences between data supplied to HMRC and Pizza Hut UK Ltd, resulting in a VAT shortfall of approximately £200,000.
• No VAT returns were supplied for any of the outlets from July 2010 to September 2011 resulting in a further VAT debt of over £400,000.
• An earlier civil investigation by HMRC found the men had submitted nine false VAT purchase invoices to HMRC between April 2005 and July 2007 to reduce the amount of VAT due.
The men pleaded guilty at Southampton Crown Court to cheating the public revenue of £598,415 in VAT. They were sentenced to 18 months in jail.