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

Court

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.



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Comments

  • John - 31/10/2016 19:52

    Google, Amazon, Starbucks, Facebook? No, the one man band not paying his taxes!

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    • walker - 01/11/2016 13:14

      The difference being that he made a deliberated, criminal misrepresentation of his income and status. Whilst I don't like what the others have got away with over the years they are using our flawed laws and tax rules to avoid large scale tax liability. Change the rules on these international cheats, but still chase the criminal - if he will break law one way, how safe are the cars he's been selling?

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