Knaresborough takeaway owner in mega-money tax scam ordered to repay £55k

Razaul Karim, 50, appeared for a financial-confiscation hearing at York Crown Court yesterday ,Thursday, July 27 when judge Simon Hickey ordered him to pay back all his ill-gotten gains to the public purse.

Karim, of Lunan Terrace, Leeds, was given three months to pay £55,003 on pain of a nine-month prison sentence if he defaulted.

In September last year, the takeaway boss was given a two-year suspended prison sentence after he admitted four counts of fraudulent evasion of VAT. The offences spanned more than three years, between March 2017 and April 2020.

He was rumbled following an investigation into his tax affairs relating to his business, the Paragon Indian takeaway in High Street.

Prosecutor Timothy Jacobs said the business had operated for many years and that between 2013 and 2015 it was VAT-registered.

However, at some point in 2015, Karim deregistered the business from VAT after claiming that the business was under the income threshold for paying the value-added tax.

An investigation into the business was duly launched, which was aided by records from two well-known delivery firms which provided services for the takeaway. The records, from August 2019, suggested that the takeaway’s turnover was way over the threshold at which companies should pay VAT.

Investigators looked into the business’s takings for the years from March 2017 and found that the turnover exceeded the VAT threshold in delivered food alone, let alone purchases made in the shop.

They found that the business’s turnover was just under £130,000, well over the £85,000 threshold.

The total amount of unpaid tax was over £51,700.

Police brought Karim in for questioning in May 2021 when he ashamedly tried to blame his accountant for the tax irregularities, but later owned up to the fraud.

However, sentencing judge Mr Hickey said that because of Karim’s hitherto clean record and otherwise “exemplary” character, he would not be sending him to jail.

He said Karim’s fraud was “out of character” and committed possibly because he was going through financially hard times.

He said that Karim was a hard-working man who had responsibilities as a father and that at the time of the offences he was “probably” struggling to pay his bills and employees.

Mr Karim’s wife Kalpana Begum Karim, 46, with whom he ran the business, had been charged with the same offences but denied the allegations. The prosecution dropped all charges against her.