Two businessmen, aged 45 and 59 respectively, were jailed for 8 years after failing to disclose Tax liabilities (Capital Gains Tax) of nearly £1 million in respect of approximately 50 properties sold over an eight year period.

Although Madhu Bhajanehatti, 45, of London and Himat Chana, 59, of Ilford, Essex disclosed some income on their Self-Assessment tax returns, they deliberately hid the sales of properties across London and Essex. In their investigation, HMRC officers discovered the duo had built up their property portfolios by using the proceeds of previous sales. A property taskforce specifically set up to tackle fraud in the industry, uncovered the duo’s dealings.

The duo evaded £650,000 and £341,000 in Tax, respectively. Bhajanehatti was ordered to pay back £190,086.42 in a confiscation order and has less than three months to pay it back or he faces a further thirty (30) months in jail. If further assets are identified in the future, for Bhajanehatti, they could also be confiscated.

Confiscation proceedings for Chana are on-going.