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Dudley director sentenced for £1.3m tax fraud

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Dudley director sentenced for £1.3m tax fraud


A businessmen from Dudley, who committed a £1.3m VAT fraud to keep his business afloat, has been jailed today for 4 years and 3 months after being investigated by HM Revenue and Customs (HMRC).

Company director Paul Marsh, 63, admitted making three fraudulent VAT declarations to HMRC for his company Draco Consulting Services which reduced the amount of tax owed by £1.3m. He used the money he stole to prop up his other company, Marlin Resources UK Limited, which was in financial difficulty.

Marsh owned and operated both companies based in Dudley, which provided payroll services to self-employed tradesmen working locally in the construction industry,

Richard Young, Assistant Director, Fraud Investigation Service, HMRC, said:

“Marsh was naive to think he could get away with this fraud. He was using the tax system like a private bank loan, to prop up his second business, which was struggling financially. By depriving public services of vital funding, financially he had an unfair advantage over honest competitors. HMRC is levelling the playing field for honest businesses and making sure that crime doesn’t pay.

“Tax fraud is not a victimless crime, it affects us all and I would ask anyone with information about people who may be involved to contact our Fraud Hotline on 0800 788 887.”

Investigators uncovered evidence from the bank accounts of both companies proving that Marlin Resources UK Limited hadn’t paid all of the VAT it owed, and that Draco Consulting Services Limited was never in a position financially to pay the tax it owed. The total value of the fraud was £1,337,311.97.

Although both companies went into voluntary liquidation in December 2008, investigations discovered that £150,000 had been transferred to another company, which Marsh was also a director of.

Notes for Editors

    1. Paul Joseph Marsh (DOB 3/12/1953) of Lickey Close, Dudley, pleaded guilty to conspiracy to cheat the public revenue contrary to Section 1 (1) Criminal Law Act 1977 on 6 October 2016 at Birmingham Crown Court. Draco Consulting Services was registered for VAT between August 2007 and December 2008. He was sentenced to 4 years and 3 months in prison, when he appeared at Birmingham Crown Court today ( 29 September 2017).
    2. Follow HMRC’s Press Office on Twitter @HMRCpressoffice
    3. HMRC's Flickr channel: www.flickr.com/hmrcgovuk

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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.

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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.

HM Revenue & Customs (HMRC)
100 Parliament St
SW1A 2BQ London