Accountant jailed for hiding Guernsey bank interest

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A chartered accountant and company director found guilty of fraud after lying to Special Compliance Office investigators has been sentenced to 15 months in prison, HM Revenue and Customs announced.

David Anthony Greenwood, aged 49, a married father of two from Haslemere in Surrey, was charged with eight counts of defrauding the Inland Revenue.

HMRC said in a statement: "Investigations found that interest he was receiving from bank accounts in the Channel Islands amounting to 100,000 was not being shown on his tax returns."

Greenwood denied owning any offshore investments in Guernsey during an interview with a Revenue Special Compliance Office investigator.

Judge Bull found that Greenwood, of Farnham Lane, Haslemere, had obtained some 54,000 from the offence, and "commented that the defendant h...

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04th May 2005 17:02

Not just a few quid!
Julian - This was not some innocent misjudgement, it was deception involving £100k according to the report. If he obtained £54k from the offence, as the judge found, then the amount "stashed away" was probably in excess of £1million (at 5% interest) and I don't call that "a few quid".

Perhaps Mr Greenwood should have thought about the consequences of his actions beforehand.

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29th Apr 2005 13:04

isn't the question really
Will he be struck off by his professional body, or simply have his wrist slapped, fined and suspended?

As far as how did they know?

Usual suspects would be:

ex wife
ex mistress
ex employee
etc etc

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03rd May 2005 22:13

Guernsey Hideout
He did whatever he did, but I can hardly understand how anyone can "rejoice" that another man - married with 2 kids - go to jail: highly disgusting society we are building (tell on thy neighbour to make yourself feel like a good citizen). Are we speaking of a murder, or a lie about a few quid stached away?

Whoever thinks that the more of these type of accountants go to jail, the better off for the other accountants, are dead wrong: once the government has followed your joyful whistle blowing, they will have a rack load of gun-ho prosecutors and a nice budget and think that the accounting profession is "dirty". And guess what...When they run out of victims, they'll come after you, because they have quotas and budgets and what not...

"WHEN YOU HAVE A HAMMER: EVERYTHING LOOKS LIKE A NAIL"

I would also tell you what I think of the gravity of the crime we are talking about, but I am afraid that some "righteous" colleague may report me...


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28th Apr 2005 21:43

How was he caught out?

We do not know, and probably never will know, how it came about that the Special Compliance Office knew that Mr Greenwood had a bank account in Guernsey.

One possibility however is that he was transferring funds from his bank account at a branch on the UK mainland to the Guernsey account.

Such transfers might well be reported to NCIS by the bank. NCIS would typically give consent to such transfers and then pass the information to the Inland Revenue (as it then was known).

A quick review of Mr Greenwood's tax returns would show no interest declared as arising from this source and an SCO investigation would follow.

Note that the Revenue are routinely seeking confiscation orders under the Proceeds of Crime Act 2002 in cases of tax evasion which result in a successful criminal prosecution. Since Mr Greenwood would also have to pay the tax which he had evaded, the confiscation order is effectively a 100% penalty on top of the 15 months imprisonment and the order to contribute £25,000 to the costs of the prosecution.

If you are an MLRO you can get confidential one-to-one email support, information and NewsAlerts from my website www.mlrosupport.co.uk.

David
[email protected]

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29th Apr 2005 12:46

Who cares how?
David - Who cares HOW he was caught. The point is that he engaged in criminal activity and we should all rejoice that he has been caught and punished. The sooner we get a few more of this type of case the better for all law abiding and ethical accountants everywhere.

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By Anonymous
29th Apr 2005 14:43

Exactly David
"isn't the question really
Will he be struck off by his professional body, or simply have his wrist slapped, fined and suspended?"

My memories of the punishments meted out by the toothless tigers in the professional bodies are that for anything less serious than mass genocide, you get admonished, ordered to pay costs and told to retrain.

LOL

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