A crooked Perth businessman has narrowly avoided jail for a five-year tax scam after a court heard he had repaid his £200,000 debt.
Construction boss Thomas Mullen cashed customers’ cheques to dodge hundreds of thousands of pounds worth of tax payments, Perth Sheriff Court heard.
He used the proceeds to fund his rampant gambling and drug addictions.
The fraud was uncovered by HMRC during an investigation into alleged money laundering at a central belt firm.
Mullen, director of Tay Roofing and Building Ltd, returned to court for sentencing on Monday, having been previously told to prepare for prison.
But the 33-year-old was instead placed on curfew as part of a year-long restriction of liberty order.
He must also carry out 300 hours of unpaid work.
No second chance
Sheriff William Wood told Mullen: “As I indicated on the last occasion, I have given very serious thought to a custodial sentence.
“While I encouraged you to make the repayment in full, that was no bargaining chip as far as the court is considered.”
He added: “I think that culpability is very high in this case because no one else but you was involved and this was done for personal gain so that you could have money to indulge your various addictions.
“No one else is to blame for that and ordinarily that would lead to an automatic custodial sentence.”
But the sheriff said this was “one of the rare occasions” where prison was not necessary.
He heard Mullen’s two staff would have lost their jobs if their boss was locked up.
Sheriff Wood added: “I hope you stay out of trouble because this was incredibly self-indulgent on your part.
“You won’t get a second chance.”
Mullen must stay at his home in Leslie Court, Fairfield Avenue, Perth, between 7pm and 6am each night for the next year, although he will be able to apply for holidays.
Changed man
The father-of-five admitted being knowingly involved in the fraudulent evasion of income tax.
Mullen failed to declare income of £409,897 between April 6 2012 and January 1 2017, evading tax payments of £204,678.
Mullen had made more than £1 million but had not paid a penny of tax over the five-year period.
The court heard the crime was uncovered in an HMRC probe into a firm called Spectrum Financial Services, amid allegations of money laundering.
The company’s Rutherglen office was raided and a mass of paperwork was seized by HMRC officers.
Documents showed a large number of cheques had been paid in by Mullen.
Some had also been paid in by an associate of Mullen, on behalf of Tay Roofing and Building.
By pleading guilty, Mullen spared the court what could have been a four-week trial.
Solicitor David Patterson, defending, said: “He has changed his ways.
“This was what seemed like a legitimate way to free up money quickly.
“At the time, he was using drugs and alcohol as a coping mechanism.
“He pays his taxes but he knows he did wrong and accepts that he must be punished.”
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