A taskforce tackling fraudulent VAT repayments in the Bulwell and Hucknall area has been launched by HM Revenue and Customs (HMRC).
The taskforce is expected to recover nearly £7 million across the Midlands.
Taskforces expect to bring in over £100 million during 2014 to 2015.
HMRC’s Jennie Granger, Director General of Enforcement and Compliance, said: “HMRC taskforces are deployed in sectors and areas where we’ve detected a high risk of tax evasion.
“People being targeted by our taskforces have no intention of playing by the rules and could end up facing a heavy fine or even a criminal conviction.
“In a previous VAT Taskforce a trader who claimed to be exporting vehicles and second-hand white goods to Africa was found to have fraudulently reclaimed over £500,000 of input tax.
“He was sentenced to four and a half years’ imprisonment and was disqualified from being a company director for six years.
“If you haven’t declared all of your income, we will find you and investigate.”
People who know someone who is evading their taxes can call a hotline on 0800 788 887.