Car dealer given suspended jail sentence after £113,000 tax evasion

Time 10:51 am, November 1, 2016

A CAR DEALER from Bury ended up in court after evading £113,000 in income tax and VAT.

Rashid Amin Moughal, 45, of Gigg Lane, Bury, was sentenced to 22 months in jail suspended for two years after evading paying the huge sum by under-declaring his income and not paying VAT on sales of second-hand vehicles.

HM Revenue and Customs’ investigation into Moughal and his business – Moughal Motors, also of Gigg Lane, Bury – centred on comparisons between his self-assessment returns, bank accounts and various auction house records, Manchester Crown Court was told.

They revealed that his sales had been understated and purchases suppressed to avoid having to register for VAT and to evade income tax.

Moughal, who had earlier pleaded guilty to the fraudulent evasion of income tax and the fraudulent evasion of VAT, was also ordered to carry out 200 hours of community work.

After the sentencing, Sandra Smith, assistant director of the HMRC’s Fraud Investigation Service, said: ‘This was a deliberate attempt to defraud the public purse by Moughal. He had been buying and selling cars since 2009 but he only registered as a sole trader with HMRC in July 2011. His subsequent tax returns proved to be a web of lies.

‘We are determined to create a level playing field for all businesses. You cannot evade your tax obligations in this way – it is unfair and criminal.’

Moughal now faces a confiscation hearing to recover the evaded taxes.

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John Bowman's avatar

John has been with Car Dealer since 2013 after spending 25 years in the newspaper industry as a reporter then a sub-editor/assistant chief sub-editor on regional and national titles. John is chief sub-editor in the editorial department, working on Car Dealer, as well as handling social media.

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