Tag Archive | "Vat fraud"

BEWARE of Trainee Accountants

Every accountant has to start somewhere To learn the trade and the tricks of the trade, so that some day, they can be called…

A contractor accountant! The best of the best!!

That is what every trainee accountant dreams about. It is the goal they imagine every night before bed and every morning before going in the shower.

“I will become a contractor accountant,” they say, over and over again.

However, there are some trainee accountants who don’t want to become part of the elite. They are not interested in being one of the top dogs who contractors throw money at.

Instead, they would prefer to use their naivety as a spring board to commit..

Daylight Robbery!

This comes on the back of a story about a trainee accountant who used his position to steal £30,952 in VAT.

He didn’t have to rob a bank or snatch a handbag. He didn’t even have to do anything fancy.

All he did was create fake invoices and then, BOOM, he started getting cash directly into his bank account.

Sneaky but clever, but totally illegal and against the law. The kind of underhand tactics a cunning trainee accountant would use again and again, no doubt, if they could get away scott free.

Fortunately the HMRC are wise to this kind of thing. They watch everything, and are ready to pounce as soon as they have enough evidence to convict.

Those 12 fake invoices created by the trainee accountant put HMRC on high alert, and it wasn’t long before they sent in the cops.

A spokesperson for HMRC had this to say – “Edmonson abused his financial knowledge, his employer’s trust and the public purse. He cooked up a batch of fake invoices to steal from the taxpayer, and now has a criminal records to show for his greed.”

So the rogue trainee accountant had his day in court and the punishment? 12 months in the slammer for VAT offences and a further 8 months for money laundering. All at her Majesty’s pleasure.

Or is it? Reports have just come in that his sentence has been suspended for 18 months, and in the meantime he will have to do 200 hours of community service.

If he keeps his nose clean then he won’t have to spend a single night behind bars.

While I do believe in giving this trainee accountant a second chance, I also think he should have to spend at least a few months in a UK prison.

Maybe some hard labour would do him the world of good and he would never think about committing fraud ever gain.

He would then become trustworthy. Someone you could put your trust in.

Just like our contractor accountants. Everything above board. Accountants you can rely on. The best of the best!!

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Military contractor targets tax avoidance for its next trick

Not content with blowing up bad guys in real life, military contractor BAE Systems has decided to target tax avoidance with some new digital software tools.

The biggest defence company in Europe is looking to begin selling its anti-tax cheat software, NetReveal, to a wide swathe of governments in central Europe, with the expectation that it can increase its client base twofold in just two short years. With something like €170bn in unpaid VAT that just disappears into the aether every year in Europe – and with “missing” payments and shell companies playing “hot potato” with money that should by all rights be taxed making up a sizable bit of this missing cash, industry experts say that in many cases technological advances in financial analysis can be highly effective in uncovering tax avoidance, tax evasion, and any other schemes that these sneaky bastards try to get up to just to avoid paying their fair share of taxes.

Whatever you may think of the military-industrial complex, NetReveal has a reputation for working – and working incredibly well. Slovakia enlisted the aid of the company in order to stem the seemingly unending flow of €3 billion per annum in VAT fraud, and within a month the program earned the country more money than it cost. In the half year following that, NetReveal increased Slovakia’s tax receipts by in excess of €500 million. That’s more or less vast shedloads of cash – and it generated an avalanche of interest in neighbouring countries like Hungary, Poland, and the Czech Republic to enlist BAE’s services as well.

Now, I have no good idea exactly how NetReveal works, besides running some incredibly detailed analysis of international payment patterns to look for dodgy activity in order to flag it for investigation later by teams of human beings, but if it works it works; I’m not going to argue with results, especially when it leads to more money in the pockets of countries that deserve their cut but aren’t getting it. Nothing makes me more incensed than tax fraud, especially when so many people think they can get away with it; it just chuffs me to bits when I hear about people geting caught and hoisted by their own petard. Greedy little gits deserve it, if you ask me!

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HMRC will track down VAT fraudsters wherever they may hide

Contractor accountants should be in no doubt that HMRC will track down fraudsters wherever they may be.

Mark Anthony McGovern jumped bail in 2008 after pleading guilty to laundering the proceeds of a VAT fraud. He was due to be sentenced at Canterbury Crown Court on the first of August 2008 but by then he had already fled the country.

The fraudster even sent the judge a note saying he was frightened and upset at the idea of serving a prison sentence but would hand himself in when he felt he had readied himself! Four years later, he was still missing.

During his absence the judge sentenced him to two years in prison and an arrest warrant was issued.

At the time the case first came to court, McGovern was said to owe the Revenue £278,340.87 from his criminal activities. Shortly afterwards HMRC applied for a confiscation order and it was ruled that McGovern should repay the money within 28 days or face a further four years imprisonment. With interest that amount now stands at £345,000 and the Revenue will continue with its efforts to reclaim it.

French police eventually arrested McGovern in a house in Languedoc-Roussillon on the 28th of March and he was extradited to the UK on the 16th April this year.

This wasn’t the first time that the wily criminal had absconded. In 1997 he was involved in another fraud case but had fled to Belgium before the authorities in the UK could arrest him. He was extradited and tried at Southwark Crown Court in 2002

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Image: You are… where? by Bods

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