The last owner of BHS has reportedly been arrested over unpaid tax.
Dominic Chappell – who bought the collapsed department chain store for £1 from previous owner Sir Philip Green in March 2015 – is alleged to have been arrested by HM Revenue & Customs (HMRC) for failing to pay over £500,000 in tax.
The taxed owed from Chappell’s personal company, Swiss Rock Ltd, includes £365,000 in VAT and £196,306 in corporation tax, according to The Guardian.
Swiss Rock was paid at least £1.6 million by BHS as part of Chappell’s acquisition of the department store chain – which lasted 13 months and went into administration in April this year before shutting down all of its high street stores by August.
The arrest of the 49-year-old is understood to have taken place in a dawn raid at his home in Dorset, south-west England.
A HMRC spokeswoman said: “We do not comment on identifiable cases, but can confirm we arrested a 49-year-old businessman.”
According to the HMRC the arrest was made on November 2, and he has since been released.
The arrest also took place the same day the Pensions Regulator began enforcement action against Green and Chappell ”to seek redress on behalf of the BHS pension schemes”.
The regulator is reportedly pursuing “multiples of £1 million” from Chappell and £350 million from Green to plug the £571 million pension black hole that emerged after BHS collapsed.
The BHS pension scheme has fallen into the Pension Protection Fund (PPF).