BARNES AND RAMAGE RECEIVE JAIL TERMS OVER TEETH WHITENING TAX FRAUD

Ian Barnes and Alastair Ramage, both from Merseyside, have been jailed over VAT fraud linked to teeth whitening products. Both men pleaded guilty in September. Liverpool Crown Court sentenced Barnes to four years and four months in prison. HMRC’s investigation identified £8.5 million in unpaid VAT and income tax linked to their sales.

The men imported and sold products containing dangerously high levels of hydrogen peroxide through UK Teeth Whitening Ltd and IBAR Trading Ltd. The companies were based in the Seychelles and Hong Kong. Messages between the men showed they knew customers had reported harm from the products. Barnes wrote in one exchange: “They said they used it for 30 minutes and it's taken the enamel off their teeth dentist said they need new teeth.” HMRC traced more than £8.5 million through 118 bank accounts, credit cards and cryptocurrency platforms.

The men sent more than £3.4 million to accounts at Euro Pacific Bank in Puerto Rico, which later closed in 2022. They spent money on jet-ski holidays and luxury goods, including a £16,000 baseball cap. They also planned neighbouring homes in Florida with a connecting tunnel and matching swimming pools shaped like teeth. In another message, Ramage wrote: “We’re on the first plane out of here if they (HMRC) come knocking. We’re talking millions and years in jail.”