After a five-year investigation by HM Revenue and Customs (HMRC), Denis Christopher Carter Lunn, who ran a Sussex-based accountancy firm called Christopher Lunn & Co, was found guilty in December of four counts of Cheating the Public Revenue and was sentenced on 6 January 2016.
HMRC’s investigation of the firm, which had over 7,000 clients, uncovered evidence of a range of serious offences, including the inflating of accountancy fees and the fraudulent use of trading losses.
Jennie Granger, director general, Enforcement and Compliance, HMRC said: “Lunn believed he could make up fraudulent claims to benefit both himself and his clients.
“I hope this result serves as a reminder to those who try to cheat the public purse – particularly those in the tax profession – that no one is above the law and that HMRC will relentlessly pursue tax evaders to bring them before the courts.”
HMRC has now started confiscation proceedings to strip Lunn of any financial gain he made as a result of his criminal activity. It has already recovered £20m ($28.8m, €26.6m) as Lunn’s former clients settle their tax liabilities, with a projected £40m expected when all clients have settled.
Lunn’s clients have been offered a chance to put things right for themselves by paying any tax and interest due as many were unaware of what was going on.
