Takeaway owner sentenced for £75,000 VAT fraud

Awais Babar charged customers VAT on their takeaway purchases but pocketed the money over five years

A Middleton-based takeaway owner, who stole VAT he charged customers, has been sentenced after an investigation by HM Revenue and Customs (HMRC).

Awais Babar (37), owner of Dixy Chicken at Cheetham Hill Shopping Centre, charged customers VAT on their purchases but pocketed the money over five years.

He also failed to pay any Corporation Tax, stealing £83,521.88 in total.

HMRC investigators found that Dixy Chicken was registered with various online portals and card payment services.

Despite having never paid any tax to HMRC, records from these services showed the company had sales of more than £950,000.

Tim Atkins, Assistant Director, Fraud Investigation Service, HMRC, said: “Babar thought he could gain an unfair advantage over his competitors by avoiding paying the tax he owed, but HMRC is determined to level the playing field and take action against those seeking to disadvantage legitimate businesses.

“Those who avoid paying their taxes steal money needed to fund vital public services.

"I would urge anyone with information on tax fraud to report it to HMRC online or contact our Fraud Hotline on 0800 788 887.”

Babar pleaded guilty to four counts of tax fraud, and on Friday (July 13) was given a 15-month jail term, suspended for two years, and 180 hours of unpaid work.

Do you have a story for us? Want to tell us about something going on in and around Oldham? Let us know by emailing news@oldham-chronicle.co.uk , calling our Oldham-based newsroom on 0161 633 2121 , tweeting us @oldhamchronicle or messaging us through our Facebook page. All contact will be treated in confidence.