The director of a Barking-based mobile phone wholesaler has been disqualified from acting as a company director for the maximum period of 15 years.
Somchul Rashid, director of TM Global Ltd and TM GB Ltd, was banned for “involving the companies in a scheme linked to VAT fraud and making wrongful VAT reclaims against HM Revenue & Customs.”
An investigation by a specialist team at the Insolvency Service found that between February and June 2006, the companies, buying mobile phones in the UK, made onward sales of £218.8m to wholesalers in other European Commission countries.
The companies filed monthly returns with HMRC “reclaiming” UK VAT monies that ‘missing traders’ (traders that had not paid over VAT due to HMRC) earlier in supply chains had failed to pay.
Both TM Global Ltd and TM GB Ltd were wound up following petitions from liquidators.
Foxlul Rashid, brother of Somchul Rashid and a co-director of the company, was disqualified for 14 years similar offenses in late January.
Paul Titherington, official receiver in the Public Interest Unit, said: “TM Global and TM GB were involved in trading and making wrongful reclaims in a fraudulent VAT scheme which had been costing the UK Exchequer significant amounts of money at the time the fraud was perpetrated.
“This is not a victimless crime, the main impact being on honest tax payers and their families who as a result suffered the effects of funding shortages in healthcare, education and other front line services.
“Regulatory changes, investigative action and legal proceedings have reduced the scale of this fraud from 2007 onwards.