Former policeman gets 10 years for VAT fraud | AccountingWEB

Former policeman gets 10 years for VAT fraud

A former police officer who set up a fake company and generated over £300 million in VAT refunds in the space of 8 months has been jailed for 10 years.

There is a report on the BBC website.

But one does have to ask oneself how it was that HMRC did not query VAT Returns showing that a new company had undertaken £2 billion of business in its first 8 months of operation!


b.clarke's picture

Payback time?

b.clarke | | Permalink

The report doesn't say how much HMRC managed to recover. The confiscation hearing is awaited with interest.

In 2000, I worked on the case of an unqualified accountant who had submitted any number of fraudulent subbie claims and was prosecuted by the IR. The ill-gotten gains (technical term there) were about £1m.

Counsel told me the tariff at the time was one extra year to be served (without possibility of remission) for each £100,000 not paid back. I have the distinct impression they have gone a bit soft since then. Perhaps someone considers it not worthwhile locking the man up for 3,000 years!


Failure to spot the bleeding obvious

The Black Knight | | Permalink

Quite normal for HMRC....his company might have needed an auditor too......Did he have an accountant?....MLR ? or is he next ?

HMRC clearly did not learn anything from the first plumber that demonstrated how lucrative VAT fraud was..............

Presumably this policemens out is the same as the in open prison...popped out for lunch and then never came back...

One also has to wonder if some of the old methods e.g a vat visit in the early years of trade were more effective than HMRC gave them credit for.

We are in a state aren't we !

memyself-eye's picture

I act for a repayment trader

memyself-eye | | Permalink

Installing solar panels - not a peep from HMRC despite 17 months of monthly VAT repayments. All perfectly legitimate I hasten to add. BUT I do wonder why there has been not even a phone call, maybe the monthly repayments (about £3k) are too small?  

b.clarke's picture

Were they told?

b.clarke | | Permalink

Were HMRC told the nature of the trade when the company / business registered for VAT?



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