Man convicted of VAT fraud imprisoned after 8 years on the run

A Stockport man who fled the country after being convicted of VAT fraud has now been sentenced to four years of jail time after evading justice for eight years. 

Mohammad Tanwir Khan, who ran a company called Spearpoint Limited through which he pocketed £817,000 worth of VAT repayments he was not entitled to, escaped to Pakistan in 2013.

An investigation by HM Revenue and Customs (HMRC) found that he had used over 350 false invoices claiming fictitious exports to obtain the fraudulent VAT repayments.

In August 2013, after Khan had left the country, he was found guilty and sentenced in his absence to three and a half years in prison. He was also ordered to repay £696,749 or face another three years in prison

Khan returned to the UK and was apprehended by HMRC officers on 13 August 2021.

He appeared at Manchester’s Nightingale Crown Court via video link on 18 August 2021, where his sentence was confirmed and he was given an additional six months for absconding.

Eden Noblett, HMRC’s assistant director of the fraud investigation service, said that confiscation proceedings were ongoing as they attempted to recover the stolen funds.

If Khan fails to pay the confiscation order, he faces another three years behind bars and will still owe the money along with any interest accrued.

“Khan stole more than £800,000 of taxpayers’ money and thought he could escape punishment – but now he must serve his sentence,” Ms Noblett said.

“The majority of individuals and businesses pay the tax that is due – however there remains a determined minority who refuse to play by the rules.”

HMRC urged anyone with information about tax fraud to report it to HMRC’s confidential tip off service.