Suspended jail sentence for London solicitor over VAT fraud 

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A London solicitor has been given a suspended jail sentence for a £96,000 VAT fraud which was uncovered by an HMRC taskforce set up to identify those attempting to avoid paying tax on property investment income

Caroline Joseph, from Wimbledon, de-registered her law firm Hanover Property Lawyers, also known as Hanover Solicitors, in 2008 saying it had stopped trading a year earlier. However, for five years she continued to practise law as Hanover Solicitors, and kept the VAT she charged her clients, HMRC’s investigation found.

Alongside her earnings as a successful solicitor, Joseph used the money she stole to support her lifestyle, purchasing a Porsche and BMW, funding a private nursery place and buying a time-share in the Bahamas, as well as maintaining a portfolio of buy-to-let properties in London.

Joseph was charged with being knowingly concerned in the fraudulent evasion of VAT from August 2007 to March 2013 under the Value Added Tax Act 1994. She was sentenced to 21 months in prison, suspended for two years, when she appeared at Kingston Crown Court, and was also ordered to carry out 240 hours of unpaid work and pay £1,500 costs.

Anthony Swarbrick, assistant director, fraud investigation service, HMRC, said: ‘As a solicitor, Joseph knew the rules and her legal responsibilities, but chose to flout them thinking that she could continue operating her business under our radar and that the law did not apply to her.

‘She will now have time to reflect on her actions. Her reputation and professional standing are now in tatters.’

Confiscation proceedings to recover the proceeds of the fraud are now underway.

Source: CCH Daily

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