BHS Crook Jailed

[GJABS]

Yes but many people use vat and corp tax as Cashflow relying on future payments to make it up. Sometimes those plans don’t go as planned.

Just seems strange that a guy is jailed for bad business. After all hmrc is often an unsecured creditor like many others who get left behind being owed money

I suspect the problem is he pulled the money out of the company and gave it to himself, then spent it that HMRC was unhappy about. Had he left it in the company and blown it on legitimate expenses it would have been alright.

[NowPermOutsideUK]

They, you and Dominic Chappell forgot the rule that the VAT money isn't yours. You collect it on behalf of HMRC so not paying it to them is blatant stealing.

You can come to an arrangement for Corp tax.

Are you suggesting that vat and corp tax be ring fenced from the date it was received??

Think about it if that was true hmrc would never be a creditor in an insolvent company

[BR14]

FOLPM1

[saptastic]

A very very good question escpecialy as when asked about making wife redundant was up in arms claiming gaar prevented it

I still don’t understand why this guy got jailed. He bought a business and ran it into the ground but where was the actual fraud. He was just a bad businessman.

This sets a dangerous precedent that despite ltd protection hmrc can go after you personally and that’s not good

He wasnt jailed for being a bad businessman

He was jailed for taking money from the business and failing to pay tax on it

"A Southwark Crown Court jury found him guilty of failing to pay tax of around £584,000 on £2.2m of income he received after buying the
failed chain for £1. The court heard the 53-year-old spent the money on two yachts, a Bentley and a holiday to the Bahamas".

"Prosecutors said HMRC repeatedly tried to chase down the missing funds, but Chappell ignored their requests, at one point going on a skiing break before asking for more time to pay the money when he returned home.

In his defence, Chappell argued he was too busy resolving issues with BHS to deal with the outstanding taxes that were due"

Former BHS owner jailed for six years for tax evasion - BBC News

Like Al Capone - got his karma through thinking he didn't need to pay tax

[saptastic]

Good to see HMRC chasing a worthy cause for a change.

[NowPermOutsideUK]

He wasnt jailed for being a bad businessman

He was jailed for taking money from the business and failing to pay tax on it

"A Southwark Crown Court jury found him guilty of failing to pay tax of around £584,000 on £2.2m of income he received after buying the
failed chain for £1. The court heard the 53-year-old spent the money on two yachts, a Bentley and a holiday to the Bahamas".

"Prosecutors said HMRC repeatedly tried to chase down the missing funds, but Chappell ignored their requests, at one point going on a skiing break before asking for more time to pay the money when he returned home.

In his defence, Chappell argued he was too busy resolving issues with BHS to deal with the outstanding taxes that were due"

Former BHS owner jailed for six years for tax evasion - BBC News

Like Al Capone - got his karma through thinking he didn't need to pay tax

Yes this is called not being able to pay your debts as they fall due which is a case of bankruptcy. He did not submit false documents which is fraud

The days of debtor jails are over expect in this case. He was clearly targeted for publicity

Philip green ran it for 15 years and took billions out to his wife in Monaco. Some poor guy ended up buying a pile of crap and faces jail for trying to be entrepreneurial

[saptastic]

Some poor guy ended up buying a pile of crap and faces jail for trying to be entrepreneurial

I have no words for you and your sentence - jailed for being entrepreneurial - you are as stupid as him?

-bought a company for a £1 - but has big debts from the outset - anyone would know the score
-he took £2m from a struggling company as consultancy - bought Bentleys, went to the bahamas , paid off mortgages etc.
-refused to pay any tax on the money he took from the company like everyone else does as he didnt "have time"
-He is a serial bankrupter and a track record of taking companies under - whilst acting the rich boy.