Two businessmen who evaded nearly £9 million in tax and flaunted a lavish lifestyle on social media are facing prison sentences. Alistair Ramage and Ian Barnes admitted being knowingly concerned in the fraudulent evasion of VAT and income tax, with a judge telling them custody is inevitable.
Lavish Lifestyle Funded by Fraud
Liverpool Crown Court heard that the pair evaded £8,499,384.47 due to HM Revenue and Customs over a seven-year period between 2016 and 2023. This included £5,307,549 in unpaid VAT from their business UK Teeth Whitening Ltd, later known as IBAR Trading UK.
The prosecution described how the fraud 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.
Messages between the pair revealed their attitude, with one from December 2017 reading: "In a few hours we'll be in first class. F*** the peasants." Another stated "46k a month, long may it continue", while a further exchange boasted: "Just think how life was before Hong Kong. Now jetsetting over the world, platinum, living the high life."
Spending on Luxury Goods and Travel
Records showed the two men spending £51,000 with Emirates and £155,000 with Virgin Atlantic in the 2018/19 tax year alone. The 2019/20 period saw £55,000 lavished on holidays and hotels, £86,000 at a Land Rover dealership, £56,000 at David M Robinson jewellers and more than £100,000 at other designer stores.
In 2020/21, they spent further significant sums at designer stores, more than £100,000 on watches and £182,000 on cryptocurrency. However, messages in January 2021 referred to Ramage having nightmares about being caught by HMRC, and in July 2021, Barnes joked about buying Ramage's boat and houses, with Ramage replying "need to before HMRC catches up with us".
Ramage's social media showed luxurious family holidays to Universal Studios in Florida and a private island in the Maldives, a selfie with boxer Tyson Fury, and in May 2022, being chauffeured to Wembley in a Rolls Royce Ghost to watch Liverpool in the FA Cup Final.
Remorse and Sentencing
David McLachlan KC, defending Ramage, said his client was "embarrassed and ashamed", adding: "He never intended nor appreciated that this business would be as successful as it was." He noted Ramage has no previous convictions and has been drinking too much since his first interview in February 2023.
Alaric Walmsley, for Barnes, said: "Mr Barnes accepts that immediate custody is inevitable. He did not start the business intending to evade tax. He accepts that, very soon, the offending became serious and sustained."
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. The case was adjourned until Friday next week due to a lack of court time, with both men remanded into custody. Judge Katherine Pierpoint told them: "Any time from now will count towards your eventual, inevitable sentence."
