Restaurant owner sent back to jail for £65,000 tax fraud
- Published
Lai will still owe the money he stole when he gets out of prison
A Chinese restaurant owner jailed for VAT fraud has been sent back to prison for failing to pay back £65,000.
David Ying Chung Lai, who owns two Newcastle restaurants, was jailed for 20 months in 2015 for faking invoices.
The scam was uncovered by HM Revenue and Customs (HMRC) and he was ordered to pay back the money within three months, but failed to do so.
Appearing at Leeds Magistrates' Court, Lai, of Parish Court, Newcastle, was jailed for a further 20 months.
A spokesman for HMRC said as well as serving the second jail term, Lai must still pay back the money, which had risen to £68,000 with interest.
Lai, who owns Mangos, on Stowell Street, and Aura, in City Quadrant, tried to claim more than £107,000 in VAT by submitting fake invoices claiming he was refurbishing his premises.
'Still owes the money'
But customs officials became suspicious when they found spelling mistakes on the documents and thought they looked unprofessional.
He falsely claimed he had spent £700,000 renovating his businesses and claimed more than £65,000 before suspicions were aroused.
Diccon Wood, HMRC spokesman, said: "Lai stole money which should have been used to fund our public services and failed. Now he is paying the price by having to spend another 20 months in jail.
"But it doesn't end there - this isn't pay up or go to prison instead. Lai still owes the money and until he pays it the amount will increase as daily interest is added."