A Forest Gate man was among 12 people arrested during a nationwide tax fraud clampdown yesterday.
The 28-year-old was taken into custody as part of the operation by HM Revenue and Customs.
The taskforce targeted individuals and organised criminal gangs believed to have claimed repayments they were not entitled to.
Since 2011, more than £290million has been recovered and it is hoped that the arrests will help recover up to £6m.
HMRC’s Jennie Granger, director general of enforcement and compliance, said: “Tax fraud is serious – it’s not a victimless crime.
“People who fraudulently claim a tax repayment are robbing the rest of us and denying money for vital public services.
“Not only could they face a heavy fine, but criminal prosecution as well.”
The arrests included a 36-year-old woman from Ilford, as well as others from East Sussex, Bedfordshire, Northamptonshire, Kent and Scotland.
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