Brothers Jailed for £1 Million Film Tax Fraud Scam
Two Warwickshire brothers have been slammed with a total of 14 years behind bars for a brazen £1 million film tax fraud. Craig Rees, 50, and his brother Carl, 52, duped HM Revenue and Customs (HMRC) with bogus Film Tax Relief (FTR) and VAT claims.
Fake Films, Fake Claims, Real Jail Time
The pair submitted fake or inflated claims for three films: Whispers, The Eight, and Violence. Authorities uncovered a web of lies involving forged receipts, fake studios, and invented expenses like sound recording and catering.
The first film’s costs were fraudulently inflated despite being made in the US, the second film was completely fabricated, and the third was produced in the US solely to rake in false tax claims.
Judge Labels Crime ‘Staggering and Audacious’
Her Honour Judge Heidi Kubik KC blasted the scheme, branding the scam “staggering and audaciously dishonest.” Craig Rees was sentenced in absentia at Birmingham Crown Court on April 8 after fleeing during the January 2024 trial.
The brothers tried to steal £542,840 in Film Tax Relief and £484,933 in VAT repayments between 2011 and 2015. They pocketed over £367,000 before being caught.
HMRC Cracks Down: Crime Doesn’t Pay
Mark Robinson, Operational Lead at HMRC’s Fraud Investigation Service, said: “Film Tax Relief is there to help genuine, honest film companies produce brilliant British films, but these brothers thought they could play the system for personal gain. We want to ensure a level playing field and encourage anyone with info on tax fraud to report it online.”
Following a tip-off from the British Film Institute (BFI), HMRC launched a deep dive that exposed the brothers’ lies and fake paperwork.
Craig and Carl operated sham film production companies from Warwickshire to push their fraudulent claims.
If you have any information on Craig Rees’s whereabouts, HMRC urges you to report it online immediately.
