Why Did HMRC Jail 2 IT Consultants?
OnTax Accountant In Dunfermline has learned that two IT consultants were sent to jail by the tax man for tax evasion using the Offshore Disclosure Facility. The only mistake these consultants made was of hiding their money that they made in Germany in an Isle of Man account. OnTax Accountant In Dunfermline has also discovered that the tax man had understood that these contractors had their accounts in the Isle of Man under an agreement HMRC has with them. OnTax Accountant In Dunfermline believes that what the two consultants did not know about was the fact that all the names of UK taxpayers are disclosed to HMRC by these banks in the Isle Of Man.
Confronted With The Facts
Robert Smith of Wigan and Stephen Howarth from Hyde proved quite difficult to deal with as even after being confronted with the facts they continued to deny the matter. OnTax Accountant In Dunfermline has revealed that taxpayers with offshore accounts are told that they have a period of leniency and both of these men them used it to the fullest as they continued to lie about the fraud even after being confronted with it.
OnTax Accountant In Dunfermline has become aware that Robert Smith did confess to one of the accounts but continued to refute about the other 11 accounts. The IT Company offered their services to the motor trade with most of their clients being from Germany.
Tax Fraud Is A Punishable Crime
It looks as if Robert and Stephen made well over a million pounds in their trades but only affirmed about fifty percent of that. OnTax Accountant In Dunfermline has learned that it is assumed that both men had dodged paying tax on at least half a million pounds over a period of 6 years.
Both men had hid the money they made in offshore bank accounts. OnTax Accountant In Dunfermline discovered that in the end both were confronted with quite the punishments. Smith had his £300,000 confiscated and a 15 month jail term imposed whereas Howarth got 12 months and £200,000 confiscated.
To Him Who Calls For The Tax, Pay The Tax!
OnTax Accountant In Dunfermline believes that the fact that they continued to hide all information about their accounts and the fraud they had committed may have led to a bigger punishment but if they had come clean and disclosed all the details the authorities might have shown some leniency.
OnTax Accountant In Dunfermline is of the opinion that it appears that these two guys were quite foolish in the way they went about their work. This matter should not affect those IT Contractors who use the offshore umbrella approach. Some of the schemes used in the Isle of Man are totally legal but others are clearly not. Pretending money earned is one thing, when in fact it is another (and taxable) is never a good way to avoid tax.
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