A MAN who tried to steal £47,000 in fraudulent VAT repayments was jailed for 12 months yesterday, as part of an HM Revenue and Customs (HMRC) taskforce crackdown on tax dodgers.
John Patrick Cahill, 52, was investigated by HMRC following suspicions about the accuracy of VAT refund claims he submitted between January 2011 and January 2012. These claims were monitored as part of a London fraudulent repayment tax taskforce, launched in 2011.
Taskforce enquiries revealed that his Mayfair business address was simply a mail-drop service. Investigations showed that although Cahill claimed to trade as an energy efficiency inspector his company made no sales for the period.
Cahill, from Walton-on-Thames, attempted to con £46,853.99 from HMRC by submitting false VAT returns claiming business expenses of around £237,000 at the 20 per cent VAT rate. These "expenses" were largely fictitious or not business-related and therefore no VAT repayments were due. The sum of £27,225.71 was actually paid out.
HMRC Assistant Director Criminal Investigation, Peter Millroy, said: This was a blatant repayment fraud set up to steal from HMRC and the wider tax-paying public.
"Our message is clear - if you choose to defraud the tax system and pursue this type of crime, we will track you down.
"Anyone with information about people who may be involved in tax fraud can contact the Tax Evasion Hotline on 0800 788 887."
At the Central Criminal Court, London, on 27 April 2013 Cahill pleaded guilty to five counts of furnishing a false VAT return with the intent to deceive. He was jailed for 12 months on Thursday 16 May 2013.
Upon sentencing, His Honour Judge Pontius, said: "Countless businesses honestly complete their tax returns and pay their taxes each year. You deliberately set out not to do so. This sentence is to deter others from doing the same."
The money will be recovered by HMRC.
A similar tax-dodging taskforce was launched in London on 13 May 2013, with more to follow in other locations later in the year.
They will put the spotlight on those fraudulently claiming VAT repayments that they are not entitled to.
The London VAT repayment taskforce is expected to recover over £7.5 million and prevent future repayments being claimed.
