An Exeter businessman has been arrested on suspicion of VAT fraud estimated at £120,000.
HM Revenue & Customs (HMRC) criminal investigators arrested the man at a residential address near Exeter this morning.
HM Revenue & Customs spokeswoman, Lisa Billard, said:
"HMRC take tax fraud seriously and will not hesitate to investigate those suspected of stealing public funds. Anyone with information about individuals who may be involved in VAT fraud can contact the Customs' Hotline on 0800 59 5000."
Business and residential premises have been searched and investigations are ongoing.
The man, a 54-year-old British national who has not been named, has been bailed until 4 March 2013.
