An accountant who hid the profits of a Cardiff motor racing business in a £140,000 tax fraud has been jailed today.
HM Revenue and Customs tax investigators discovered that accountant Michael Jones, aged 60, hid the true income of one of his companies – Nick Jones Racing Ltd. He also encouraged other companies and sole traders – clients of his accountancy business, J&R Business Services Ltd – to commit tax fraud by participating in a so-called “advertising tax saving scheme”.
HMRC officers found that Jones invited 12 companies, most of them local, to purchase advertising on his company’s race cars and website. No real advertising occurred, but the participating companies reclaimed the VAT on the advertising costs. The participators were then personally reimbursed with a gift of purportedly “tax free” money. Jones profited himself by falsifying the accounts of Nick Jones Racing Ltd. He failed to show the real income of the business, instead transferring its income to his personal bank accounts.
Jones was sentenced today at Cardiff Crown Court to 32 months imprisonment after admitting: cheating the Revenue; VAT fraud; and money laundering – and was also disqualified as a company director for five years.
Lynam Tax Investigation Experts have a vast amount of practical experience in managing serious tax fraud investigations. If you are worried about a tax investigation we can advise you on the best course of action. If appropriate, we can help you manage any necessary disclosures. If you are facing criminal charges we can help you obtain first class legal representation, in order to obtain the optimum outcome for you, your business and your family.
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