HM Revenue & Customs (London): Tax fraudster to remain behind bars

A former community leader from West London, who has failed to fully repay a £1.7million confiscation order imposed after he was convicted of tax fraud has been sentenced to a further four years in jail.

Mazhar Hayat Raja was set to be released early from a six year jail term this week, but will remain behind bars as to-date he has only repaid £680,000 after being forced to sell a variety of assets including houses, business premises, motorcars and personal effects.

Raja was found guilty following a successful investigation by HM Revenue & Customs (HMRC) of pocketing tax and National Insurance he should have deducted from his employees wages and paid to HM Revenue & Customs. He ran a series of companies supplying labour to a number of different industries. The fraud netted him at least £3million over a ten-year period. He was jailed for six years in 2008 for the fraud and ordered to re-pay crime proceeds of £1.7million in 2009. To-date he has only paid £680,000 and his failure to has seen an extra four years and 20 days in prison.

Robert Alder, Assistant Director for HMRC said:

“Tackling fraud is one of our top priorities. We have a duty to stop money being diverted and stolen from the nation in what are often large scale and ruthless attacks on the tax system. This case is a result of an in-depth investigation by dedicated officers, who work tirelessly and diligently, against those intent on stealing from the public purse. Working with our colleagues in the Crown Prosecution Service, we are committed to bringing the criminals responsible for this form of crime to justice and deny them from being able to retain and enjoy the proceeds of their crimes."

Background

During the trial in 2008 it was shown Raja lied throughout an investigation by HM Revenue & Customs officers and completed false statements of his personal assets. Investigators discovered that Raja supplied labour to several agencies since the early 1990's, in the engineering and electronics industries, that had been 'hidden' behind an empire of numerous companies that he secretly controlled. These companies were deliberately dissolved after Raja funded his luxurious lifestyle by effectively pocketing the PAYE tax and National Insurance deducted from his employees.

The court also heard how Raja had supplied labour to businesses serving Heathrow and Gatwick airports in the catering and cleaning sectors. This enterprise grew until he was supplying hundreds of people each week. Although he made PAYE returns for these companies, they were falsified to conceal the true amounts which should have been paid to HMRC. He also set up a number of bank accounts in the names of his wife and other relatives to conceal the hundreds of thousands of pounds he had extracted from the companies.

Notes to editors

1. Details of the confiscation default sentence hearing this week along with the previous confiscation order and original sentencing include:

Confiscation Default Sentence - Tuesday on 15 March 2011 at City of Westminster Magistrates Court

* Mazhar Hayat Raja, (DOB 09.02.58), formerly of 279 Hounslow Road, Hanworth, Feltham, Middlesex, was sentenced to an additional four years and 20 days in prison for failing to fully repay a confiscation order of £1.7million.

Confiscation Order - 8 April 2009 at Southwark Crown Court

* Raja received a confiscation order requiring him to repay £1.7million or face a further six years in prison.

Original Sentencing - 24 April 2008 at Southwark Crown Court

* Raja was found guilty on nine counts of Cheating and was sentenced to six years in prison, on each count to run concurrently. He was disqualified from holding a Company Directorship for 12 years.

A Financial Reporting Order was also secured against Raja. This means that for six years following his final release from prison he will, every three months, have to provide HMRC with full details of his personal and business financial affairs. Failure to comply is punishable by imprisonment or a fine. 

2. Photo Mazhar Hayat Raja can be found at:
http://nds.coi.gov.uk/Content/Detail.aspx?ReleaseID=418687&NewsAreaID=2&ClientID=257

3. Follow HMRC on Twitter @HMRCgovuk

LON 19.11

Issued by HM Revenue & Customs Press Office

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