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Liverpool pub couple jailed
for tax fraud
A Liverpool couple who ran a pub and garage in
the city have been jailed for a total of seven years for a ₤470,000 tax and
benefit fraud. Members of the Knutsen family ran Chaplin's Bar on Lodge Lane and
a car repair garage, on Hill Street, but failed to pay any VAT, National
Insurance or Income Tax while also fraudulently claiming benefits.
The fraud was revealed during an investigation by HM Revenue and Customs (HMRC)
into the family members:-
► Bernard Knutsen, 68, who was jailed for 4 years.
► His wife Maureen, 62, was jailed for 3 years.
► Their daughter Kelly Ann, 39, was jailed for 21 months suspended for 2 years.
Sandra Smith, Assistant Director, HMRC Fraud Investigation Service said:-
"This family thought they were exempt from the law. You cannot decide to ignore
your tax obligations and not expect HMRC to take action. We are determined to
maintain a level playing field for all local businesses and will not tolerate
fraud like this. Tax evasion isn't a victimless crime, tax fraud is theft from
the public purse, it takes money out of public services that everyone in the UK
relies upon. If you suspect fraud similar to this report it to the HMRC 24 hour
Fraud hotline on:- 0800 788 887 or go
online."
HMRC investigators found Bernard Knutsen ran the Hill Street garage; which was
known at various times as Able Testing, Hillside Services and The Service
Station; and failed to pay any VAT, Income Tax or National Insurance. He did the
same with Chaplin's Bar, which he ran with the help of his wife Maureen. The
pair failed to declare their income from the businesses when claiming various
benefits.
Their daughter Kelly Ann received unexplained money from both businesses into
her bank account. She also claimed benefit to cover her rent but failed to
declare a second property she owned and rented out.
Family friend Gary Hyland, 50, was also involved in the fraud and was given a 2
year community work order with 12 months supervision and a 3 month curfew for
benefit fraud, on 8 May 2017, at Liverpool Crown Court. He did not declare his
rental income to HMRC and the Department of Works and Pensions (DWP).
Hyland lied about his involvement in Chaplin's Bar to secure a ₤13,000 loan to
buy a caravan. He admitted being a front for the business and had no financial
involvement in it. He also failed to declare he was renting out a property he
claimed to live at for his benefit claim.
The investigation by HMRC and the DWP found other individuals claiming benefits
without declaring income received while working for or with the Knutsens. These
individuals were investigated separately by DWP.
A DWP spokesman said:- "Only a small minority of benefit claimants are
dishonest, but cases like this show how we are rooting out the unscrupulous
minority who are cheating the system and diverting taxpayers' money from those
who really need it."
The Knutsens were sentenced on 1 December 2017, at Liverpool Crown Court,
confiscation proceedings have begun to recover the stolen tax.
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