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Fraud on HMRC on employees?

Fraud on HMRC on employees?

Peter Rose chartered accountant recently convicted of defrauding employees by deducting PAYE and NIC and not paying these over to HMRC.     Is it not the case that he defrauded HMRC, not the employees since, whether or not Rose paid the deductions over to HMRC, they were validly deducted?


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11th Jan 2013 16:30

Fraud Act 2006

My understanding (from the HMRC press release) is that Mr Rose was charged under the Fraud Act 2006 in relation to the PAYE and NIC.  He was not charged with, for example, the offence of cheating the public purse or with an offence under the Taxes Acts in that connection.

Mr Rose admitted the offences with which he was charged.

Under the Fraud Act 2006 it is not necessary for the prosecution to specify a 'victim' - depending upon how they put their case.

The HMRC Press Release includes the following:

"He defrauded his own staff over a nine year period by keeping £150,000 in Pay As You Earn (PAYE) and national insurance contributions he had deducted from their salaries. He also failed to pay £65,000 income tax or national insurance on his own earnings".

Without knowing the full facts I do not know why HMRC have expressed matters in this way.  But they have.


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