Most wanted HMRC tax fugitive jailed

One of the UK’s most wanted tax fugitives has been jailed for eight years after spending nine years on the run.

Sarah Panitzke, originally from York, played a leading role in a vast multi-million-pound VAT fraud and became one of the UK’s most wanted criminals after absconding during her trial in 2013.

In February, the 48-year-old was arrested while walking her dogs in Spain in an operation led by the Spanish Guardia Civil, working alongside HM Revenue and Customs (HMRC).

Sarah Panitzke launched an appeal against extradition proceedings, which failed, and she was returned to the UK by HMRC. On 10 June 2022, she appeared at Kingston Crown Court and was jailed for eight years.

Simon York, Director, Fraud Investigation Service, HMRC, said:

“Sarah Panitzke helped launder millions of pounds of stolen money and thought she could run from her crimes. She spent nine years hiding – but we never stopped looking.

“We worked tirelessly alongside the Spanish authorities to track her down and ensure she was brought back to face justice.

“This is testament to the dedication of our officers who work hard every day to ensure the most serious frauds don’t go unpunished, and we continue to relentlessly pursue the small minority who think it’s acceptable to steal taxpayers’ money.

“We encourage anyone who has information about a tax crime to report it to HMRC online. Search ‘Report Fraud HMRC’ on GOV.UK and complete our online form.”

Jessica Walker of the Crown Prosecution Service (CPS) said: 

“Sarah Panitzke, who fled the country during a multi-million-pound VAT fraud trial, is finally behind bars thanks to the committed work of our extradition team and HMRC.

“We are clear that no matter how long it may take, we will work tirelessly to ensure people face justice for what they have done.

“Panitzke begins her eight-year prison sentence today and we will be working with partners to recover the funds she took from the public purse.”

NCA International Deputy Director Tom Dowdall said: 

“Sarah Panitzke was on the NCA most wanted list for nearly a decade. Her jailing is the culmination of years of hard work by the NCA and partners at home and abroad to trace and return her to the UK.

“It does not matter how long fugitives run, we have the capabilities, tenacity and excellent relationships with international law enforcement to find them.”

Sarah Panitzke played a pivotal role in a sophisticated multi-million-pound fraud and laundered extraordinary volumes of stolen money through offshore bank accounts.

The gang set up numerous businesses claiming to be legitimately importing and selling mobile phones, but the businesses were a front for an elaborate scheme to steal more than £20 million in VAT repayments.

Despite going to great lengths to hide the criminal profits, HMRC investigators uncovered a complex web of transactions they used to launder stolen money through bank accounts in the UK, Andorra, Dubai, Hong Kong, Switzerland, Portugal and the US.

Sarah Panitzke fled to Spain during her trial in 2013 and was convicted and sentenced in her absence to eight years in prison. She and her 17 co-conspirators were given sentences totalling 135 years for the multi-million-pound VAT fraud.

In 2016 and whilst still on the run, a court also ordered that she repay more than £2.4 million within three months or serve an extra nine years in jail.

HMRC believe that she had been hiding in Andorra and Spain for the last nine years and living under an assumed identity. She was captured after the Spanish Guardia Civil identified her in a village in the region of Tarragona.

Plain clothes officers from the Spanish Guardia Civil approached her on 27 February 2022, in the small town of Santa Barbara, near the Catalan coast.

She was arrested and subsequently returned to the UK by HMRC officers on 9 June 2022.

Sarah Panitzke appeared at Kingston Crown Court on 10 June 2022 and was sentenced to eight years in jail.

Notes to Editors

1. Sarah Panitzke, DOB 03/03/1974, was arrested in Spain on 27 February 2022 in an operation led by the Spanish Guardia Civil, working alongside HMRC. She was extradited back to the UK by HMRC on 09 June 2022.
2. Sarah Panitzke appeared at Kingston Crown Court on 10 June 2022 and she was sent to prison for eight years.
3. She was charged with conspiracy to acquire criminal property in relation to her role in a multi-million-pound VAT fraud in 2010, and convicted and sentenced in her absence to eight years in prison on 22 August 2013.
4. A confiscation order was made against Sarah Panitzke (in her absence) to the amount of £2,455,913 on 22 March 2016. She was given three months to pay the full amount or face an additional nine years in prison.
5. No money has ever been paid towards the confiscation order. The total amount outstanding, including interest, which continues to accrue at a rate of £538 a day, and had reached £3,470,575 by May 2022.
6. Link to previous story here
7. You can find out more about HMRC's approach to tax fraud at gov.uk.
8. Follow HMRC’s Press Office on Twitter @HMRCpressoffice