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Adviser stole £107k tax and hid cash in kids' accounts
A chartered accountant who also acted as a financial adviser has been jailed for four years after he stole £107,000 of tax and tried to hide the money in his children’s bank accounts.
Abdul Aziz Patel, 54, of Ilford, Essex, a chartered certified accountant, failed to register with HMRC.
HMRC reported he also did not declare his earnings and money he made from renting out a property – an income of almost £430,000 - and instead, held the money in a variety of bank accounts that he controlled, including accounts he had opened in his children’s names.
He traded as AAUP and Adam & Fleming from April 2005 and his total estimated income from accountancy and property rental from April 2005 to April 2013, was estimated as £429,438.25, with £107,718.38 tax due.
Giving his verdict at Snaresbrook Crown Court yesterday, HHJ Kamil said: “As an accountant and registered agent acting for others what you did was not through ignorance or negligence, it was through pure greed.”
Paul Barton, assistant director of the Fraud Investigation Service at HMRC, said: “As an accountant, Patel was in a position of trust and knew only too well his actions were illegal and what the consequences would be when he was caught. He was given the chance to put things straight by paying the tax and penalty, but ignored it, so is now paying the price for ignoring his responsibilities.”
An HMRC statement read: “Patel was registered to act as an agent for his clients, providing services as an accountant and financial adviser but often asked his clients to pay him cash, in an attempt to hide his true earnings, brazenly telling them ‘HMRC will see the profit made and I would have to pay tax’.
“He was offered the opportunity to pay what he owed in full, plus any interest and penalties due, through HMRC’s civil Contractual Disclosure Facility but ignored all letters sent to him and HMRC began a criminal investigation into his tax affairs. Patel was arrested In September 2013.”
“At interview, Patel initially admitted to HMRC investigators that he had not declared his income since 2005 and in a panic he had shredded some of his bank statements. However, he later changed his story, claiming that a childhood friend in Dewsbury, West Yorkshire, with no accountancy experience, was really in control of his businesses and rental property.”
Confiscation proceedings to recover the proceeds of his criminal activity will follow.