Three face jail over tax evasion (From Asian Image)

Three face jail over tax evasion

5:55pm Tuesday 7th July 2009

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Three men who evaded more than £5 million tax using hidden bank accounts and illegal workers are facing jail, HM Revenue and Customs (HMRC) said.

Karmjit Singh Biryah, Tejpal Singh, and Harnek Singh Biryah used the money to buy exclusive properties, expensive cars, and a wedding venue in India, it was disclosed today.

Harnek Singh Biryah, 40, and Tejpal Singh, 39, both of separate addresses in Gatehill Gardens, Luton, were today convicted of charges of cheating HMRC at Luton Crown Court.

Karmjit Singh Biryah, 41, also of a separate address in Gatehill Gardens, Luton, admitted cheating HMRC in September last year.

All three men will be sentenced tomorrow at Luton Crown Court.

An investigation into the three showed Karmit was the director of KSB Construction Ltd (KSB), a labour supply company set up in 2001 and run from his Luton home.

The company ran two separate bank accounts, one on record and one completely off record, meaning for several years it only declared a fraction of its turnover for VAT and corporation tax purposes.

The investigation found the company employed a mostly illegal workforce using false details.

HMRC today said KSB paid workers less than the going rate, in cash from the off-record bank account, allowing them to be the cheapest labour supplier and obtain more work.

The tax lost from KSB between 2001 and 2006 has been calculated as more than £5 million including interest.

KSB was closed down in January 2006 and Biryah Construction Ltd (BCL) took over the contracts and started to trade from the Luton home address of its company director Tejpal Singh.

Harnek Singh Biryah was the company secretary of both KSB and BCL. Again two separate bank accounts were set up to hide the true profits of the business.

The tax and VAT lost from BCL exceeds £600,000 over an 18 month period, it was disclosed.

The investigation found all three men owned one or more exclusive properties in Luton as well as expensive vehicles.

A large wedding venue, Galaxy Resorts, was built in the Punjab, India, with the proceeds of the fraud, HMRC said today.

Restraints have now been served on the three and confiscation of assets is being sought, including the property in India.

The case was prosecuted by the Revenue & Customs Prosecutions Office (RCPO), an independent prosecuting authority responsible for the prosecution of all HMRC cases in England and Wales.

HMRC investigator Rob Mortlock today said: “These men have evaded paying taxes and have stolen from the pockets of all honest citizens by their actions.

”They systematically cheated HMRC over a six-year period and gained an unfair advantage over their competitors using illegal workers and paying them a low wage.

”We take a serious view of such conduct and will actively pursue those who commit such fraud to the full extent of the law.”

The case was jointly investigated by officers from HMRC and Bedfordshire Police.

Detective Constable Giles Hutchinson, from Bedfordshire Police Economic Crime Unit, said: “Bedfordshire Police has played a huge part in gathering the evidence necessary to convict these people of a multimillion pound fraud.

”We are delighted that our efforts have meant the defendants are now paying the ultimate price for trying to avoid the tax man.

”Bedfordshire Police will continue to bring pressure on those who try and avoid paying their dues.

”We will continue to work with HMRC and other agencies who jointly can make a difference and bring these and others like them to justice.”

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