Dominic Chappell, who bought BHS for £1 in 2015, has been found guilty of evading tax of £584,000.
He has been jailed for six years.
A criminal investigation by HMRC revealed Chappell, deliberately evaded VAT and corporation tax payments for his personal services company, Swiss Rock Limited, and did not disclose dividend income.
He provided consultancy services through Swiss Rock Limited to facilitate the purchase of BHS by Retail Acquisitions Limited, where he was a director.
Chappell 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.
