Friday 21 December 2012

VAT fraud

Hairdresser jailed for brush with VAT crime

A tax fraudster – who stole more than £147,000 with his daughter, using an innocent businessman’s details to reclaim VAT – has been caught and jailed after being on the run and abandoning his daughter to face the law alone.
The pair also pocketed Pay As You Earn (PAYE) contributions from their employees before John Littleboy absconded.
Littleboy and his daughter ran two hairdressing salons, both called Headcandi, from premises in Gidea Park and Chafford Hundred in Grays, Essex.
Littleboy was the main organiser of the fraud and, together with his daughter Katy, stole the identity of a legitimate businessman.
Using the businessman’s details, they submitted bogus claims for refunds of VAT for their hairdressing business. Their criminal activity included keeping tax and National Insurance deducted from the wages of their staff instead of paying it to HMRC.
HMRC finally arrested Littleboy on Monday 17 December 2012 – he’s been handed a two-year prison sentence.
Peter Millroy, assistant director of HMRC Criminal Investigation, said: ‘John Littleboy tried to avoid his punishment by absconding, but he has been caught. He organised a catalogue of criminal activity along with his daughter, Katy Littleboy. Not only did they steal from their employees but also used the identity of an innocent businessman to commit a sophisticated tax fraud purely for their own greed.
‘Stealing over £147,000 in tax destined to pay for public services is not acceptable. If you know of anyone committing tax fraud please tell us by calling our Hotline, 0800 59 5000.’
In handing down sentencing, judge Owen-Jones said: ‘This was a skilful, scheming, well-planned and determined operation to claim large repayments of VAT by creating invoices to defraud HMRC. This impacts on every member of the general public.’

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