Tax Rebates & Refunds

Jail for Manchester company directors over £500,000 tax evasion

February 26, 2013
Posted in Fraud — Written by Jennifer

Two company directors based in the Greater Manchester area have been handed prison sentences of up to 15 months after they were found guilty of evading around £500,000 in income tax.

At Liverpool Crown Court, it was revealed that Stephen Howarth from Gee Cross and Roderick Smith of Standish had failed to declare profits from their IT company and therefore didn’t pay as much tax as they should have. Instead, they held the money in bank accounts in the Isle of Man.

The fraudulent activity was uncovered after the tax authorities in Germany, where the pair’s IT company had many customers, noticed irregularities in the accounts. After investigating, sales worth more than £1 million in Germany were revealed. Back home, the two directors had only decalred sales of less than £50,000.

A spokesperson for HMRC, which is responsible for calculating income tax and processing tax rebates as well as chasing tax evasion and fraud, said that the money had deceitfully been:

“…siphoned off into the offshore accounts of five shell companies registered in Mauritius and the Isle of Man created by the directors solely for the purpose of tax fraud”.

For their parts in the fraud, Smith and Howarth were handed jail sentences of 15 months and 12 months respectively.

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