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9am Lowdown: Brexit will cause ‘DIY recession’

23rd May 2016
Editor AccountingWEB
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AccountingWEB

In this morning’s lowdown, two accountants have been jailed after HMRC investigations, and George Osborne warns of a recession if Britain leaves the EU.

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Brexit will cause ‘DIY recession’

George Osborne has warned leaving the European Union would lead to a year-long ‘do-it-yourself’ recession.

According to the BBC, this latest Treasury analysis predicts a drop in GDP by 3.6% compared to if Britain votes remain. Iain Duncan Smith has dismissed the Treasury’s findings as "deeply biased view of the future". 

Speaking at a business in the south coast today, Osborne is expected to say: "It's only been eight years since Britain entered the deepest recession our country has seen since the Second World War. Every part of our country suffered."

"The British people have worked so hard to get our country back on track. Do we want to throw it all away?"

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Accountant hides fraud in children’s accounts

An accountant has been sentenced to four years in prison after attempting to conceal £107,000 of tax in his children’s bank accounts.

Abdul Aziz Patel did not declare earnings from renting out a property. Patel also encouraged his clients to pay him in cash to circumvent his paying tax. According to HMRC, Patel admitted shredding some of his bank statements, but later retracted that story, claiming his childhood friend was in control of his businesses.

Paul Barton, HMRC fraud investigation assistant director said: “As an accountant, Patel was in a position of trust and knew only too well his actions were illegal and what the consequences would be when he was caught. He was given the chance to put things straight by paying the tax and penalty, but ignored it, so is now paying the price for ignoring his responsibilities.

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Accountant jailed after Gift Aid fraud

An accountant who submitted false VAT invoices and committed Gift Aid fraud totalling £400,000 has been jailed.

An HMRC investigation discovered accountant Abu Talib Ghadiri and his brother listing donations from deceased taxpayers to claim the Gift Aid repayments. The pair also submitted false VAT invoices, which Ghadiri tried blaming on an ex-girlfriend.

Sentencing Ghadiri, Judge Arran said: "Your evidence was a series of lies, displaying ‎a meanness and cowardice in blaming others. Taking advantage of a dying person was particularly disgraceful. This sentence reflects your sheer dishonesty and lack of remorse.”

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Replies (3)

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By ShirleyM
23rd May 2016 12:39

I don't believe anything Cameron or Osbourne says. They deliberately lie, and get things wrong. Even if it were true, I would rather be poor (for a while) and free, than be a rich man slave. I know that's an exaggeration, but if you don't have democracy and self-government then you are little more than a slave.

Also, with the way the economics are going in the EU, we will be made bust anyway with all the bail-outs we will be expected to finance, and the 'bribes' to Turkey and everyone else plus the unknown number of 'refugees' we will be forced to take. Our national debt will continue to spiral out of control if we stay in, and we won't get any benefit from it, but other countries will.

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By SteveHa
23rd May 2016 13:11

"It's only been eight years since Britain entered the deepest recession our country has seen"

So, as members of the EU then? Well, that's as good a reason as any to vote out, then. Thank you, Mr O.

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Hallerud at Easter
By DJKL
26th May 2016 14:49

I did wonder why the local B & Q was rumoured to be shutting.

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