Two North Wales shopkeepers jailed for tax fraud after 1.2 million illegal cigarettes were found

A pair of shopkeepers caught with more than 1.2 million illegal cigarettes, 300 kg of tobacco and nearly 6,000 litres of alcohol have been jailed. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Wrexham-based Hallmat Mahmood, 33, and Dara Ahmed, 36, were arrested after HM Revenue and Customs (HMRC) investigators found the products, which were worth £468,182.38 in unpaid duty, in storage units, a flat and a car. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

HMRC searched four storage units the pair rented under false names and found 1,241,660 illegal cigarettes. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Mahmood and Ahmed claimed they only stored legitimate items in the storage units and the illegal goods belonged to a friend who they allowed access to just five days earlier. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

HMRC investigators found more tobacco and cigarettes in Mahmood’s vehicle when they arrested him, but he insisted they belonged to another friend and he was just delivering them for him. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

More illegal goods were found in a flat above the pair’s shop, which was owned by Mahmood and run by Ahmed. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

In total, 1,254,700 cigarettes were seized over the course of the operation – enough to fill more than 62,000 packets. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

A further 5,888.9 litres of beer was seized, as well as 300.75 kilos of tobacco. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Richard Wilkinson, Assistant Director, Fraud Investigation Service, HMRC, said: ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“Mahmood and Ahmed constructed a web of lies to try and cover up their illegal operation, which undercut honest, hard-working retailers who do the right thing. Now they’re paying the price for their actions. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

“I would urge anybody with information about individuals or businesses involved in tax fraud to report it to HMRC online or call our Fraud Hotline on 0800 788 887.” ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Mahmood and Ahmed pleaded guilty to excise duty fraud at Caernarfon Crown Court on 7 November 2018. Mahmood was responsible for £276,000 of the excise duty fraud and on 19 December 2018 was sentenced to 19 months in jail. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

Ahmed was sentenced to six months in jail on the same day after being responsible for £191,000 of the fraud. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

A Range Rover owned by Mahmood was seized and sold at auction and further confiscation proceedings are underway. ‌​‌‌‌​‌‌‍‌​‌‌‌​‌​‍‌​‌‌‌​‌​

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