VAT evaders in Coventry have been stung for nearly £1.7 million in the last financial year by Customs and Excise officers.

A fraud team based in the city dealt with nine cases of VAT evasion across a wide variety of businesses including second-hand car dealers and furniture shops.

The team uncovered VAT arrears of £345,000, imposed fines of £210,000 and prevented further evasion of an estimated £1.14 million.

The methods of fraud involved ranged from suppressing payments for goods, claiming back VAT on dodgy invoices and fiddling the prices of cars.

The cases have been settled out of court, with the businesses agreeing to pay the tax arrears and the fines imposed by Customs.

Customs spokesman Bill O’Leary said:

“These results are a tribute to the hard work, skill and professionalism of the team.

“Business should learn that they can face heavy financial penalties if they evade VAT.

“Depending on the seriousness of the offence, they could end in court and facing a prison sentence.”