Second jail term for failing to pay back £75K

A Birmingham fraudster has been jailed for a second stretch of 20 months for failing to pay back the £75,000 owing from a two-year tax fraud

Craig McDougall was originally sentenced to four years in prison for evading tax by lying about the takings from his haulage business, after an investigation by HMRC.

McDougall was convicted after trial of evading income tax, national insurance and VAT to a total of £161,175 and sentenced at Birmingham Crown Court in July 2017.

He was then ordered to repay £75,777 but failed to pay back any of the money and has now had another 20 months added to the end of his sentence.

Debbie Porter, assistant director, fraud investigation service, HMRC, said: ‘This case proves crime does not pay. McDougall’s original sentence has increased by nearly 50% and he will still owe the money when he is released from his extended period in prison.’

McDougall, the owner of a Wythall-based heavy goods haulage business, was found to have lied about his turnover and income for more than two years. He even claimed HMRC had lost his records but no paperwork was ever received.

Investigators were able to check his bank records and found significant discrepancies, which meant that during 2011 and 2013 his turnover was £830,000 and not £649,058, as McDougall had claimed.

He also said his income was only £16,995 for those years, but he withdrew more than £235,000 which he was unable to account for.

Report by Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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