"Patel masterminded a gang that was convicted in 2023 of one of the UK's biggest VAT tax frauds in HMRC's history. In a sequence of trades known as carousel fraud, he moved goods between different companies, creating false export and import records that he used to claim back large sums from the tax authorities. Soon after the fraud was uncovered, Patel absconded to Dubai, where it is understood he has been ever since."
"Carousel fraud has netted criminals hundreds of millions of pounds in VAT fraud over recent decades and led to concerns about HMRC's ability to protect from abuse the main tax on the sale of goods and services. There are also likely to be concerns about the length of time it has taken to secure the convictions, which resulted in a group of VAT fraudsters being tried in their absence, and the confiscation order, which has taken a further two years."
"During the trial, investigators showed how Patel's operation stole millions of pounds through VAT repayment claims on false exports of textiles and mobile phones. Arif Patel's seized Ferrari. Photograph: HMRC Press Office Patel's gang also imported and sold counterfeit clothes that would have been worth at least 50m had they been genuine. He has now been ordered to pay back 90.5m with the sale of his properties in Preston, London and overseas."
Arif Patel, 57, from Preston, will have UK homes and business premises seized after a confiscation order grants recovery of up to £90.5m. Patel fled to Dubai in 2011 after masterminding a gang convicted in 2023 for one of the UK's largest VAT carousel frauds, which used false export and import records to claim repayments. Investigators showed the operation stole millions via VAT repayment claims on false textile and mobile phone exports. The gang also imported and sold counterfeit clothing worth an estimated £50m if genuine. Patel’s Ferrari and overseas properties will be sold to satisfy the order.
Read at www.theguardian.com
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