FORMER ISLAND HARBOUR DIRECTOR JAILED FOR TAX EVASION

A former director of Island Harbour has been jailed for 6 years after being found guilty of evading tax totalling £584,000.

A criminal investigation by HM Revenue and Customs (HMRC) revealed Dominic Chappell, who bought BHS for £1 in 2015, deliberately evaded VAT and Corporation Tax payments for his personal services company, Swiss Rock Limited, and did not disclose dividend income.

Chappell, 53, of Winterborne Clenston in Dorset, provided consultancy services through Swiss Rock Limited to facilitate the purchase of BHS by Retail Acquisitions Limited, where he was a director.

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Dominic failed to submit VAT returns for a 17-month period from March 2015, evading £343,511. HMRC’s investigation revealed the company’s sales invoices totalled £2.3 million, meaning he was liable for £351,944 in VAT. He paid just £8,433.

The businessman also paid just £10,000 of £164,064 in Corporation Tax due to HMRC and neglected to notify HMRC of a £330,000 dividend paid to him through Swiss Rock Limited, which entered liquidation in 2016. The Income Tax evaded on the dividend totalled £86,163.

The court heard, that despite mounting debt, Chappell splashed out on luxuries including yachts, expensive cars, and holidays.

Simon York, Director, Fraud Investigation Service, HMRC, said:

“This was deliberate theft from UK citizens. Chappell was a high-profile businessman who knew tax had to be paid on his income and profits but chose not to do so. That’s money that should have been supporting our vital public services instead of funding his lavish lifestyle.

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“This result sends a clear message to the minority who commit tax crime that no matter who you are or what resources you have at your disposal, no one is beyond our reach.”

Dominic Chappell denied the offences during a hearing in June 2019. He was found guilty and sentenced on Thursday 5th November 2020 following a 4-week trial at Southwark Crown Court, prosecuted by the Crown Prosecution Service. Chappell will serve half his sentence on licence.

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The views/opinions expressed in these comments are solely those of the author and do not represent those of Island Echo. House rules on commenting must be followed at all times.
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freedom
freedom
1 year ago

This was deliberate theft from UK citizens

what utter tosh. This was the state getting upset because it hadn’t been given its cut of his hard work – the state didn’t do anything to make that money – he did.

he made it, he should keep it – it will only be trousered by scheming politicians or handed out to sponging illegals and other deadbeat layabouts.

the real crime here is the state demanding money from an individual with menaces – that being ..we will put you in a tiny room for years and deprive you of your freedom if you do not hand over that cash.

Let justice be done
Let justice be done
Reply to  freedom
1 year ago

Tell that to the local small businesses that he never paid when he was in charge of Island harbour. They were left with huge unpaid bills . He has been convicted of four speeding offences and thought it unfair to lose his licence as he seemed to think he was in some way better than everyone else and in some way entitled to privilege. He has been bankrupt three times which means the creditors lose out every time and his lifestyle is funded by them. It is nonsense that anyone can be a company director after being bankrupted once until all debts are repaid. Are you not aware that the rest of us do indeed foot the bill for the consequences of his decisions, both monetarily and in terms of the stress suffered by those who lost money to fund his lifestyle. They have no redress. They are all his… Read more »

freedom
freedom
Reply to  Let justice be done
1 year ago

I am guessing then, those small business owners never had the sense to adopt adequate credit control facilities. you know – set a limit, no more services until paid – that limits your risk of not being paid a large bill.

so what if he had been done for speeding – what has that got to do with business – just because someone sets a limit for a road, doesn’t make them right.

bankrupt three times – just means failed in three different attempts at being successful – how many others are simply writing off their debts without worrying about the people they owe the cash to – never lend money you cannot afford to lose.

the rest of us do not foot the bill – he never owed me any money.

freedom
freedom
Reply to  freedom
1 year ago

and perhaps if the state wasn’t so greedy in demanding so much of the money people earn, then they would not be so keen to avoid paying it

the state is quick to take money from you when you make some, but not willing to give you back any losses you make – the state is the criminal here – demanding money and threatening to lock you up if you don’t pay, taking money from your pocket, when you are doing the work and paying it to theirselves.

direct taxation isn’t necessary – all should be attached to discretionary purchases only. It is just the states way of rinsing the hard workers to give it to the layabout shirkers.

only the takers are in favour of tax/tax/tax

Let justice be done
Let justice be done
Reply to  freedom
1 year ago

The fact that he is prepared to ignore speed limits is indeed relevant , it indicates that he does not respect the law. One speeding conviction is almost forgivable if a lesson is learned . Three further convictions says it all. It is an indication of a total disregard for the law and for others. The same attitude is evident in his business dealings. I hope that you never experience the loss or injury of a loved one because some arrogant and selfish driver decides to ignore the speed limit. Limits are there for a reason. Maybe you should spend a day with the Motorway Police , Ambulance and Fire services as they have to recover dead bodies and seriously injured casualties, and inform their relatives. You reference to the small businesses not having the sense to adopt suitable credit control facilities is grossly offensive. Small businesses have to operate… Read more »

freedom
freedom
Reply to  Let justice be done
1 year ago

Let justice be done..

if you are stupid enough to continually extend larger and larger credit facilities to someone on trust, without getting a penny paid or setting an upper limit, then you deserve all you get.

just because a handful of other humans in london or wherever, decide that other humans shouldn’t be allowed to drive a car over a certain speed doesn’t make them right.

anyone who blindly follows the law without questioning it or challenging it, is a useful drone that the government likes.

George Bingham
George Bingham
Reply to  freedom
1 year ago

freedom, you must be bokers. Dominic Chappell is a complete charlatan who has never made a penny in his life, only stolen from others. Jail is too good for him.

George Bingham
George Bingham
Reply to  freedom
1 year ago

Btw freedom, I have the misfortune to know Dominic Chappell. I had to take him to court on two occasions to recover the money he owed me.

freedom
freedom
Reply to  George Bingham
1 year ago

george – you know him and you lent him money – so whatever happened to “hmm won’t lend to him, i won’t get it back”

Gerald Jones
Gerald Jones
1 year ago

Would that the tax authorities pursued those serial tax evaders such as E Bay/ Pay Pal/ Amazon with such vigour….or any vigour!

freedom
freedom
Reply to  Gerald Jones
1 year ago

the employees of the tax authorities never go after larger corporates – it is far too difficult and time consuming.

people refer to him as a rogue for not handing over his cash to the state – are people really that daft that they think it is perfectly acceptable for another group of people, (government) to forcibly take money off you which you made through your efforts. The government didn’t do any of the work, so why should they get any of the spoils.

if there weren’t so many leeches in society the stealing (tax) of peoples money wouldn’t happen.

freedom
freedom
Reply to  freedom
1 year ago

all those that voted down the comment – i will happily take money off you after you get paid, as you seem like the sort of people who love working for nothing.

OldMike
OldMike
Reply to  Gerald Jones
1 year ago

Those companies pay all the taxes that they are required to do. That’s why they employ so many accountants – to take advantage of all the ins-and-outs of the tax laws, and it’s all perfectly legal.

Eve Shipman
Eve Shipman
1 year ago

By using his first name only – in the fourth paragraph – it may give the impression that IE supports this rogue.
The default position regarding a guilty person is full name or surname only.

 

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