The managing director of a clothing chain with branches across Kent has been jailed after failing to pay his VAT in full and pocketing £68,000 in tax and national insurance contributions deducted from his employees' wages.

HM Revenue and Customs (HMRC) investigators who examined the accounts of Punkyfish (GB) Ltd discovered that Kemal Gediz, 49, had deliberately under-declared his sales to avoid paying between £300,000 and £500,000 in VAT.

Punkyfish operates in around several locations, including Bluewater, Maidstone, Canterbury, Bexleyheath and Bromley.

David Margree, assistant director of criminal investigation at HMRC said: “Kemal Gediz’s idea of getting ahead in business was to falsify his accounts and steal from his own employees. In doing so he deceived not only HMRC and his staff, but also the thousands of businesses that operate honestly and within the law.

“HMRC will thoroughly investigate suspected tax fraud, and bring enforcement action against those who cheat the system.”

In May 2011, Gediz submitted a VAT return for Aliko Ltd, trading as Punkyfish. The return showed sales of £1.2 million for the 18 month period starting in November 2009. HMRC subsequently made a visit to Gediz and discovered paperwork showing that sales were in fact £7.3 million, some £6 million more than he had declared.

Gediz’s lies had resulted in a VAT underpayment of a sum estimated at between £300,000 and £500,000.

Kemal Gediz’s idea of getting ahead in business was to falsify his accounts and steal from his own employees.

But further checks revealed that Gediz had also failed to file any tax forms or pay the Pay As You Earn (PAYE) and National Insurance contributions he had deducted from the salaries of approximately 70 staff. These contributions totalled around £67,600.

Gediz, of Forest Road, East London, pleaded guilty to the offences on 9 April 2013.He appeared for sentencing at Canterbury Crown Court on Friday when he was jailed for 18 months.