Self-assessment tax fraudster gets suspended sentence
Michael Roger Frosh given suspended prison sentence and ordered to undertake 80 hours unpaid work after submitting false self-assessment tax returns
An events organiser who kept the full extent of his income hidden from HM Revenue & Customs has been given a suspended prison sentence and ordered to do 80 hours of unpaid work by Bristol Crown Court.
Michael Frosh submitted false self assessment tax returns from 2002 to 2007 to illegally evade almost £65,000 in income tax on commission paid to him in the United Arab Emirates, HMRC said.
Gross commission was paid into his Dubai bank account, which he then withdrew using ATMs in the UK in an attempt to avoid detection, according to HMRC.
Frosh was given six months’ imprisonment but the sentence was suspended for two years, and ordered to undertake 80 hours unpaid work as a community punishment order.
HMRC said the amount of income tax evaded came to £64,137 plus daily interest since the start of the fraud.
Frosh was prosecuted for being knowingly concerned in the fraudulent evasion of income tax, contrary to S144(1) of the Finance Act 2000, the taxman said.
The scam came to light in February 2007 after officers from Wiltshire Police Economic Crime Unit spoke with Frosh in relation to suspected money laundering offences. The unit then referred the matter to HMRC.
Upon sentencing His Honour Judge Horton said:
“The unpaid work you will serve will be a minute by minute reminder of what tax evasion will mean to you and others.”
Pat Dunn, HMRC Assistant Director Criminal Investigation said:
“Our investigators, with invaluable help from Wiltshire Police, have unravelled a deliberate tax scam. Frosh was and is a UK resident meaning UK tax rules apply and UK tax should have been paid.
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“This criminal attack on the tax system not only robbed the exchequer, and therefore honest UK taxpayers, of public funds, but is also unfair to those that diligently abide by the rules.
“Tackling tax fraud is a priority for us and we will not hesitate to pursue those who commit this type of offence.”
Further reading:
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