FOUR people have been arrested in Hampshire on suspicion of defrauding at least £1m worth of tax.

The three men and one woman were arrested in Southampton yesterday by HM Revenue & Customs (HMRC) criminal investigators.

They were arrested on suspicion of conspiracy to cheat the revenue and on suspicion of money laundering offences.

The three Lithuanians and one Georgian - who all live in Southampton - have been bailed until 15 December 2011.

Three residential properties and two business premises in the city have been searched and investigations are ongoing, according to HMRC.

HMRC spokesman Bob Gaiger, said: “HMRC take tax fraud seriously and will not hesitate to investigate those who ultimately rob the exchequer of public funds. Anyone with information about individuals who may be involved in tax fraud can contact the Customs’ Hotline on 0800 59 5000.”