PORTSMOUTH, UK – A former Chinese takeaway owner has been handed a suspended prison sentence after spending thousands on Apple gadgets and Burberry goods instead of paying a £43,000 VAT bill.
Zhang Jin Chen, 51, of Havant Road, Portsmouth, was found guilty of fraudulently disposing of property while bankrupt under the Insolvency Act 1986. He received an 18-month suspended sentence at Portsmouth Crown Court last Friday (16 May) and must complete 150 hours of unpaid work plus 10 rehabilitation days.
Tax Evasion & Lavish Spending
Chen, who ran Fortune House takeaway on Albert Road, failed to register the business for VAT despite trading since 2012. After an HMRC inspection in February 2020, officials ruled he should have been paying VAT since December 2012, leaving him with a £43,876 debt.
Instead of settling the bill, Chen and his then-wife sold their Garnier Street home in October 2020—with Chen withdrawing £107,550 in cash over two months, including two £30,000 withdrawals.
Rather than paying HMRC, he splashed £3,500 on Apple products and £880 at Burberry just before Christmas 2020. Months later, he declared bankruptcy, falsely claiming he had only £20 in his bank account.
Bankruptcy Restrictions & Asset Recovery
In March 2022, Chen signed a five-year Bankruptcy Restrictions Undertaking, barring him from:
Borrowing over £500 without disclosing his bankruptcy
Holding certain public or corporate director roles
The Insolvency Service is now pursuing him under the Proceeds of Crime Act 2002 to recover the lost tax funds.
HMRC Statement
A spokesperson said:
“Chen deliberately avoided paying taxes while spending on luxury items. This sentencing sends a clear message—HMRC will pursue those who try to cheat the system.”