Two businessmen who swindled nearly £9m through a teeth whitening business have been jailed at Liverpool Crown Court. Alastair Ramage and Ian Barnes admitted evading millions in VAT and income tax between 2016 and 2023.
The scale of the fraud
Barnes and Ramage evaded £8,499,384.47 due to HM Revenue and Customs over a seven-year period. This included £5,307,549 in unpaid VAT from dealings by their business UK Teeth Whitening Ltd, later known as IBAR Trading UK.
The court heard how the scheme involved setting up various companies in the UK, Seychelles and Hong Kong. Ramage, 44, of York Close in Formby, evaded income tax amounting to £1,228,792, while Barnes, 53, of Southport Road in Lydiate, evaded £1,912,075.
Luxury lifestyle and dangerous products
The fraudsters spent £500 on one ice cream sundae and £16,000 on a Gucci cap while living the high life. They also planned to build neighbouring homes in Florida with connecting tunnels and swimming pools shaped like teeth.
WhatsApp messages released by HMRC showed they were aware of the dangerous nature of their teeth whitening products. Barnes stated at one stage: "They said they used it for 30 minutes and it's taken the enamel off their teeth. Dentist said they need new teeth."
Sentencing
Both defendants admitted three counts of being knowingly concerned in the fraudulent evasion of VAT and one of being knowingly concerned in the evasion of income tax. Barnes was handed four years and four months behind bars, while Ramage received four-and-a-half years.
Zoe Gascoyne, director of HMRC's fraud investigation service, said following the hearing: "Barnes and Ramage knew they were stealing from taxpayers and selling dangerous products at the same time. Their messages show a complete disregard for the hard working majority who pay the taxes that fund our public services."
