A Perth construction boss faces jail for a £200,000 tax scam.
Crooked Thomas Mullen was exposed as part of an HMRC probe into alleged money laundering.
Investigators discovered the 33-year-old director of Tay Roofing and Building Ltd had been cashing customers’ cheques and dodging hundreds of thousands of pounds worth of tax payments over a near-five year period.
Mullen appeared at Perth Sheriff Court and admitted being knowingly involved in the fraudulent evasion of income tax.
The father-of-five failed to declare income of £409,897 to the taxman between April 6, 2012 and January 1, 2017, evading tax payments of £204,678.
The court heard Mullen had made more than £1 million, but had not paid a penny of tax over the five-year period.
Fraud ran for years
Sheriff William Wood deferred sentence and released Mullen on bail after hearing he was prime carer for his elderly grandfather.
He told Mullen: “I have had some thoughts about whether you should be locked up, given that you have pled guilty to a serious charge of fraud that ran for a number of years.
“Given the whole circumstances, I am prepared not to do that.”
The sheriff suggested Mullen should consider alternative care arrangements. “You may be jailed for this, but at this stage I’m not sure what will happen.”
Alleged money laundering
Fiscal depute Lora Apostolova told the court: “This crime was detected following an HMRC investigation into a money service business called Spectrum Financial Services Ltd.
“Spectrum – and those responsible for the corporation – became subject of suspicions in the course of the investigation into alleged money laundering.”
The firm’s office in Rutherglen was raided and a mass of paperwork was seized by HMRC officers.
“Documents showed that Spectrum had regularly cashed cheques for customers, often for significant sums of money,” said the fiscal depute.
“This, in turn, led to a series of investigations into individuals who had cashed cheques with Spectrum, following concerns that there were some tax compliance issues.”
Ms Apostolova said: “The accused was one of the those who came to be investigated.
“In general terms, a customer at Spectrum was required to open an account and could then cash cheques at the office.
“Photocopies of identification documents used to open these accounts were held on file by Spectrum.
“Copies of receipts and cheques cashed were also held.”
Cheques cashed
The fiscal depute said: “The accused operated a building and moving business at the time and was often paid by cheque.”
As well as Tay Roofing and Building, Mullen was also a director at 1st Choice Roofing and Building Maintenance and Premier Developments Perth.
Records from Spectrum’s office showed that a large number of cheques had been cashed by Scott Hughes – an associate of Mullen’s – on behalf of Tay Roofing and Building.
“A large number of cheques had also been cashed by the accused,” said the prosecutor.
“A financial investigation found that Mr Hughes had no identifiable wealth,” the court was told. “Suspicions were formed by the HMRC that the accused was facilitating the cashing of a substantial number of cheques.”
Mullen generated income of £1,047,795 throughout the five-year period, before applying for bankruptcy.
Ms Apostolova said: “Throughout the period of the libel, the accused did not pay any amount of tax.”
She confirmed the Crown Office would begin confiscation action to claw back proceeds.
Mullen, of Leslie Court, Fairfield Avenue, will be sentenced in the new year.
