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Bury car dealer sentenced for VAT fraud

Press Release   •   Oct 28, 2016 17:14 BST

A car dealer from Bury has been sentenced for not declaring his true income or registering his business for VAT.

Rashid Amin Moughal, 45, of Gigg Lane Bury, was sentenced to 22 months jail suspended for two years today after admitting evading £113,000 by under declaring his income and not paying VAT on sales of second-hand vehicles at Manchester Crown Court on 19 September 2016.

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 his sales had been understated and purchases suppressed to avoid having to register for VAT and to evade Income Tax.

Sandra Smith, Assistant Director, Fraud Investigation Service, HMRC, 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.

Notes for editors

1.Rashid Amin Moughal, dob 12/08/71, of Gigg Lane, Bury, Manchester, was sentenced to 22 months jail suspended for two years and a 200-hour community work order at Manchester Crown Court today after pleading guilty previously to the fraudulent evasion of Income Tax - contrary to Section 106A of the Taxes Management Act 1970 and the fraudulent evasion of VAT contrary to Section 72 of the Value Added Tax Act 1994.

2.He was trading as Moughal Motors of Gigg Lane, Bury.

3.Anyone with information regarding fraud is encouraged to contact the 24-hour Hotline on 0800 59 5000 or report it online via: http://www.hmrc.gov.uk/reportingfraud/online.htm

4.Follow HMRC Press Office on Twitter @HMRCpressoffice

5.HMRC's Flickr channel: www.flickr.com/hmrcgovuk

Issued by HM Revenue & Customs Press Office

HM Revenue & Customs (HMRC) is the UK’s tax authority.

HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.