ACCA-qualified accountant jailed for failure to declare £430k income
An ACCA member from Essex who failed to declare income and pay £107,000 of tax owed from accountancy work and property lettings and tried to hide the money in his children’s bank accounts has been jailed for four years, following an HMRC investigation into his affairs.
Abdul Patel, who was based in Ilford, traded as AAUP and Adam & Fleming from April 2005.His total estimated income from accountancy and property rental from April 2005 to April 2013, was put at £429,438, with £107,718 tax due.
The investigation found Patel was registered to act as an agent for his clients, providing services as an accountant and financial adviser but often asked his clients to pay him cash, in an attempt to hide his true earnings, telling them ‘HMRC will see the profit made and I would have to pay tax’. However, Patel did not declare his earnings and money he made from renting out a property. Instead, he held the money in a variety of bank accounts that he controlled, including accounts he had opened in his children’s names.
He was offered the opportunity to pay what he owed in full, plus any interest and penalties due, through HMRC’s civil Contractual Disclosure Facility but ignored all letters sent to him and HMRC began a criminal investigation into his tax affairs. Patel was arrested in September 2013.
At interview, Patel initially admitted to HMRC investigators that he had not declared his income since 2005 and he had shredded some of his bank statements. However, he later changed his story, claiming that a childhood friend in Dewsbury, West Yorkshire, with no accountancy experience, was really in control of his businesses and rental property.
He was charged and found guilty of cheating the public revenue and was sentenced to four years in prison at Snaresbrook Crown Court.
The judge said: ‘As an accountant and registered agent acting for others what you did was not through ignorance or negligence, it was through pure greed.’
Confiscation proceedings to recover the proceeds of his criminal activity are to follow.
Paul Barton, assistant director, fraud investigation service, HMRC, said: ‘As an accountant, Patel was in a position of trust and knew only too well his actions were illegal and what the consequences would be when he was caught. He was given the chance to put things straight by paying the tax and penalty, but ignored it, so is now paying the price for ignoring his responsibilities.’
Source: CCH Daily
