Suspended sentence and £113,000 bill for tax-evading car dealer

A used car dealer from Bury has been handed a 22-month suspended jail sentence after failing to declare his true income or register his business for VAT.

Rashid Amin Moughal, of Gigg Lane, Bury, received his sentence – which is suspended for two years – after he admitted evading £113,000 of taxes by under declaring his income and not paying VAT on sales of second-hand vehicles at Manchester Crown Court on September 19th.

The HM Revenue and Customs (HMRC) investigation into Moughal and his business centred on comparisons made between his Self-Assessment returns, bank accounts and various auction house records.

They revealed that the 45-year-old's sales had been understated and purchases suppressed to avoid having to register for VAT and to evade Income Tax.

Sandra Smith, assistant director at the HMRC’s Fraud Investigation Service, said: “This was a deliberate attempt to defraud the public purse by Moughal.

“He had been buying and selling cars since 2009 but he only registered as a sole trader with HMRC in July 2011. His subsequent tax returns proved to be a web of lies.

“We are determined to create a level playing field for all businesses. You cannot evade your tax obligations in this way – it is unfair and criminal. If you know of anyone who is committing tax fraud you can report them by calling our 24-hour Hotline on 0800 59 5000.”

Moughal now faces a confiscation hearing to recover the stolen taxes.