The former owner of BHS has been arrested over unpaid tax amounting to £500,000.
Dominic Chappell, 49, confirmed to ITV News he had been arrested by HM Revenue & Customs in relation to half a million pounds in tax on money from from the chain.
A HMRC spokeswoman said: "We do not comment on identifiable cases, but can confirm we arrested a 49-year-old businessman".
She said the arrest was made on November 2, the same day that the Pensions Regulator began enforcement action against Sir Philip and Mr Chappell "to seek redress on behalf of the BHS pension schemes".
The regulator is reportedly pursuing a payment of £350 million after the department store chain collapsed in April, resulting in a £571 million pension deficit.