Page last updated at 12:13 GMT, Wednesday, 31 March 2010 13:13 UK

Fraudsters ordered to repay 1.5m

Karmjit Biryah, Tejpal Biryah and Harneck Biryah
The three men ran a building company together

Three men who carried out an £8m tax fraud have been ordered to pay £1.5m compensation within six months.

Karmjit Biryah, 41, was jailed for four years and eight months at Luton Crown Court last year after admitting fraud.

His brother Tejpal Biryah, 38, and cousin Harnek Biryah, 40, denied the offence but were convicted by a jury.

They were all warned by Judge Andrew Bright QC that they face an extra three years and nine months in prison if they do not meet the debt.

Tejpal and Harnek were jailed for three-and-a-half years and five-and-a-half years respectively.

The court heard the men ran KSB Construction Ltd and supplied labour to major UK contractors.

Avoided VAT

But many of their workers were illegal immigrants using false documentation.

The court heard all three had avoided paying VAT, National Insurance, PAYE and Corporation Tax over a six-year period.

Jack Straw said that "community payback" money was a vital tool

They all lived in separate houses in Gatehill Gardens, Luton but initially the business was run from High Mead, Luton.

At the time of their trial the fraud was put at £5.6m but further investigations for the confiscation proceedings have revised the figure to a total of £8,092,514.

The court heard the company had two bank accounts, one which was declared for tax purposes but represented only 25% of their work force and the other which was kept secret.

It closed down in January 2006 when the Inland Revenue began looking at their affairs, but they set up another company Biryah Construction Ltd and continued the fraud.

The court ordered different figures of compensation the three men must pay. Karmjit must pay £560,331, Tejpal £528,565 and Harnek £422,844, making a total of £1,511,742.

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