In the news there are lots of cases where companies have been investigated by the HMRC and found to be committing VAT or tax fraud. Some of these cases are more serious than others.
Background: Tax Fraud
One such case relates to an investigation into a company in Northumberland.
Following on from an in depth HMRC investigation, a company director was sentenced after being found guilty of VAT fraud. The director was found to have forged multiple documents to steal in excess of ??148,000.
Between 2015 and 2016 it was claimed by the Director of CFM Transport Ltd that the company had spent ??1,106,493 on vehicles and fuel. During a HMRC investigation, it was discovered that these claims were false and the company had created 46 false invoices to support VAT returns.
As a result, repayments of ??148,227.74 were received by the Director who said that the money was used to avoid the business collapsing.
At South East Northumberland Magistrates Court, the Director admitted to creating false invoices and VAT fraud.?? The Director attended Newcastle Crown Court in June 2017 and was sentenced to a period of 16 months in prison to be suspended for a period of two years.
Anyone suspected of VAT fraud will be investigated extensively and if found guilty, the penalties can be severe and long lasting. The consequences of tax fraud can also have far reaching implications for businesses, their owners and their families.