Frank Dowling, founder of the London-based pub and restaurant company Inc Group, has reportedly been arrested on charges related to tax fraud.
The Standard has reported that Dowling was arrested by revenue and customs officers after liquidators found documents appearing to show that his companies owed much more in tax than HMRC was aware of.
The investigations centre on allegations of £6m-worth of undeclared VAT and PAYE.
The Standard quotes sources saying that Dowling was arrested at the company’s headquarters at his home in Greenwich on 28 November. Associate Audrey McCracken was also arrested on that day in Glasgow, along with an accountant who worked for the company.
The report says that administrators are trying to establish the ownership of “many millions” of pounds worth of art and antiques believed to belong to one of Dowling’s companies, Greenwich Inc Holdings. A source is quoted saying: “The trigger for the investigation was a creditors meeting he called: the meeting did not happen. All the creditors were there but Dowling did not attend. Instead he left the country.”
M&C reported earlier this month that a subsidiary company, Greenwich Inc Holdings Ltd, had been placed in administration. According to the Standard, Greenwich Inc is also in administration and Greenwich Inc Trading has been liquidated.
The newspaper said lawyers for Dowling and McCracken said they denied any wrongdoing and were “cooperating fully” with HMRC. They added: “The investigation, as we understand it, primarily relates to a VAT issue which is complex as it involves different entities within the business structure. The structure is entirely legitimate.” Administrators are looking to sell some businesses as “a going concern”.
Union Square and American Bar & Grill will be operated for at least a further four months, they said, while Inc Club has already shut.
Neither HMRC nor the Metropolitan Police were willing to comment when contacted by M&C Report.
