Dominic Chappell, the former owner of BHS, has been arrested for unpaid bills, it emerged, on the eve of a High Court deadline for him to provide evidence about why £6m is missing from BHS’s balance sheet.

Mr Chappell, a serial bankrupt, has been arrested by tax officers amid claims that his business, Swiss Rock, owes HMRC more than £500,000 in unpaid corporation tax and VAT after the collapse of the 88-year-old BHS.

Mr Chappell put Swiss Rock into liquidation, meaning he avoided paying his debts. A report for MPs by Professor Prem Sikka claimed the firm appeared to have made a “deliberate decision” not to pay tax and VAT bills in favour of paying thousands of to Mr Chappell.

The arrest took place on Nov 2. It is believed his country home near Blandford Forum in Dorset was also searched by investigators. HMRC declined to comment other than to confirm that “we have arrested a 49-year-old businessman”.