VAT fraud accountant to repay £47,000
An Essex accountant who received a 10-month suspended prison sentence in January for trying to evade almost £100,000 in tax has been ordered to repay £47,000.
AAT member Martin Kennedy from Walton-on-the-Naze, Essex, had previously pleaded guilty to charges under the VAT Act 1994 and Fraud Act 2002.
This week he was ordered to repay almost £50,000 under a confiscation order at Ipswich Crown Court.
According to the East Anglian Daily Times, Lynne Shirley, prosecuting, said Kennedy’s benefit from his offending was £99,651 and the agreed recoverable amount was £47,282.
The accountant's fraud was discovered after an HMRC investigation. He had admitted supressing client business transactions by £93,799 between December 2007 and June 2002, resulting in a non-payment of £99,651 of VAT.
While being investigated, Kennedy maintained that if he had declared the correct VAT amount, he would have been unable to pay staff and left with a zero bank balance.
But during the time the fraud took place, he purchased bought a house for £280,000 along with a large number of shares.
Alongside his 10-month prison sentence, suspended for two years, he received a curfew restricting his movements from 6pm to 6am for six months from January.