The boss of a Newcastle-based engineering firm was sentenced to eight years in prison this week for perpetrating a £6 million tax fraud.
Stanley Miller, aged 57, ran MGM Precision Limited, T-Tec (Precision Engineers) Limited and SLM Engineering Ltd; in Newburn, Newcastle. With the collusion of one of his employees Daniel McDonald, aged 33, Miller defrauded the taxman of £5,952,339 in VAT, Income Tax and National Insurance – between May 2008 and May 2016.
The frauds were uncovered after a routine HMRC VAT visit. The tax inspectors were shown various invoices. As is fairly common at these inspections, the tax officers took copies away with them for later detailed checking: when they were discovered to be fake.
Miller had forged invoices and then submitted false VAT returns in order to reclaim just over £1M of VAT. Additionally, instead of paying over the PAYE deductions to HMRC, he had instead pocketed £4,900,000 of Income Tax and National Insurance Contributions that had been deducted from the wages of his MGM employees. His accomplice, Daniel McDonald, had provided invoice templates used to support the false VAT repayment claims.
Miller was convicted of Cheating the Public Revenue and VAT Fraud. He was sentenced to eight years and three months in prison. He was also disqualified from being a company director for nine years. McDonald was also convicted of Cheating the Public Revenue and VAT Fraud, and he got a three-year prison sentence.
HMRC have commenced proceedings under the Proceeds Of Crime Act to recover the defrauded money.
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