AN HMRC INSIDER has been jailed along with 14 others after he diverted £1.2m of tax payments into the accounts of his co-defendants.
Michael Kitchen, a former HMRC administrative officer, made 158 separate transactions as he channelled the taxes away from the public coffers.
He was employed to allocate the PAYE accounts of businesses, but was dismissed in 2009 after an internal investigation.
The group was sentenced at Liverpool Crown Court, with Kitchen ordered to pay back £175,000 and jailed for 18 and a half years, while he will face a further two, should he fail to pay.
Ian Horridge of internal governance at HMRC said: "Kitchen abused his position of trust in a sophisticated and sustained fraud aimed at paying the tax liabilities of his friends and associates. HMRC is committed to the highest level of integrity and we take the strongest possible action against the tiny minority who let us all down by falling short of those standards.
"We also use confiscations to ensure that people don't benefit financially from their criminal activity. The confiscation orders required all the defendants to pay back their ill-gotten gains, or face jail and still owe the money."
You may also like
If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.
In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.