A company director from Aberdare, who set up fake businesses and sent bogus invoices between them as he attempted to steal more than £140,000 in tax, has been jailed for 18 months after an investigation by HM Revenue and Customs (HMRC).
Richard Morgan, 53, from Llwydcoed, set up seven fake companies, which he said provided marketing consultancy services. But the HMRC investigation found that none of them had any legitimate trade and were set up solely to fraudulently claim VAT repayments.
Morgan made eight false VAT repayment claims between July 2015 and February 2016. To support these claims he provided fake bank statements and invoices that detailed charges between his companies, but investigators found that it was all fictional. He attempted to fraudulently claim repayments totalling £141,369. Only £17,610 was paid out.
Although under investigation, Morgan went on to set up other companies, but was still unable to prove any legitimate trade.
As well as having an 18 month jail sentence imposed at Merthyr Tydfil Crown Court today (9 January 2018), Morgan was disqualified from being a company director for five years.
Colin Spinks, Assistant Director, Fraud Investigation Service, HMRC, said:
“Morgan attempted to make a lot of money at the expense of taxpayers and the UK’s public services, setting up companies just so that he could steal the VAT. He never intended to trade legitimately, instead faked invoices that made it look like he was trading. He knew exactly what he was doing but he is now paying the price with a criminal record and an 18 month sentence.
“Anyone with information about individuals or businesses committing tax fraud can contact our Fraud hotline on 0800 788 887.”
Notes for Editors
- Richard Morgan (DOB 20/12/1964) of Kingsbury Place, Llwydcoed, Aberdare, plead guilty to being knowingly concerned in the fraudulent evasion of VAT contrary to section 72 of Value Added Tax Act 1994 and, the possession and making or supplying articles for the use in fraud contrary to Section 6 and Section 7 of the Fraud Act 2006 at Merthyr Tydfil Crown Court on 13 November. He was sentenced to 18 months in jail at the same court today (9 January 2018).
- The HMRC Fraud Hotline - on 0800 788 887 – is open between 8am-8pm seven days a week, 365 days a year. You can also report online using our digital form available on GOV.UK.
- HMRC’s flickr site www.flickr.com/hmrcgovuk
- Follow HMRC’s press office on Twitter @HMRCpressoffice
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.