A takeaway owner blew £30,000 on Apple gadgets and Burberry while dodging a tax bill – now he owes £70,000 and faces 18 months in prison
HMRC has warned of an ongoing crackdown on tax evasion and fraudulent bankruptcy attempts, ensuring those who prioritise personal luxury over public duties face serious financial and legal repercussions.
It cited a recent case of a former Portsmouth takeaway proprietor who has been hit with a major repayment order after splurging sale proceeds on luxury items instead of settling his VAT debts.
Zhang Jin Chen, 52, who ran Fortune House, a Chinese takeaway on Albert Road in Portsmouth as a sole trader, failed to register the business for VAT despite operating since at least 2012. An HMRC visit in February 2020 uncovered the issue, leaving him with a substantial unpaid VAT bill.
The situation escalated after Chen and his ex-wife sold their house on Garnier Street, Portsmouth, in October 2020. Rather than using the funds to address his tax obligations, he withdrew tens of thousands in cash over the following months – including two large withdrawals of £30,000 each in November 2020. Chen claimed the money went toward gambling debts but provided no evidence.
Instead, records showed lavish spending: over £3,500 on Apple products in November and December 2020, plus £880 on Burberry items just nine days before Christmas that year. There was no proof he still possessed or had sold these goods.
In July 2021, Chen declared bankruptcy, stating he had only £20 in his bank account and could not repay his debts, including the VAT owed to HMRC.
Investigations revealed this as fraudulent disposal of property under the Insolvency Act 1986. He was found guilty in May 2025.
At Portsmouth Crown Court on 13 February 2026, Chen received a confiscation order requiring him to repay £62,755 – covering HMRC debts plus an uplift for current value – along with £8,000 in costs, totaling more than £70,000. He must pay within three months, or face up to 18 months in prison. Even if jailed, the debt remains enforceable.
He had earlier received a suspended sentence and has signed a five-year Bankruptcy Restrictions Undertaking (until March 2027), which restricts borrowing over £500 without disclosure and bars him from certain public roles.
“Zhang Jin Chen had more than enough money to settle his tax bill following the sale of his house but chose instead to withdraw large sums of money and make luxury purchases. This confiscation order means that Chen’s debts will not disappear – he will remain liable for the full amount until it is paid,” said Alexander Grierson, Head of Asset Recovery at the Insolvency Service.
“The Insolvency Service will work tirelessly to protect creditors and ensure individuals like Chen face the full consequences of attempting to defraud the system.”
