Entertainment & Arts

Five to be charged for film tax scam

Film reel
Image caption Five people are due to appear in Birmingham Magistrates' court in June in connection to a film tax scam

Five people are to be charged in connection with a tax scam that allegedly allowed investors in the British film industry to offset losses.

It is alleged that the tax relief fraud cost the public revenue around £125 million, according to the Crown Prosecution Service (CPS).

Andrew Penhale from the CPS said the evidence suggested there was "a conspiracy to defraud investors".

The defendants are due to appear in court in Birmingham on 18 June.

"It is alleged that, between January 1, 2002 and July 1, 2011, a tax relief that allows investors in the British film industry to offset losses against other tax liabilities was abused and dishonestly marketed in order to cheat the public revenue," Mr Penhale added.

It comes just a month after five people from across the UK were convicted for a tax scam in which they tried to claim £2.8m for a Hollywood blockbuster that they never intended to make.

The fraudsters, who said a Jordanian company was backing the film for £19m, attempted to claim £1.48m in VAT and £1.29m in tax credits.

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