A Royal Navy submariner from Fife could face further punishment after admitting a £20,000 income tax fraud.
David Russell, 36, of Somerville Road, Rosyth, pled guilty to fraudulently obtaining money over a three-year period from Her Majesty’s Revenue and Customs (HMRC) by submitting self-assessment tax returns which sought tax relief on work-related travel expenses he said he had incurred.
Russell was also accused of making false declarations about his earnings and receiving £20,000 in repayments he was not entitled to.
A HMRC investigation discovered Russell had actually stolen the money by claiming tax relief on work-related travel expenses that had actually already been reimbursed by his employer.
The fraud was carried out between November 1 2013 and November 9 2016, and Russell admitted the charges against him at a hearing at Dunfermline Sheriff Court back in June.
However, now Russell has been sentenced at the same court this week, the Royal Navy could yet take further action against Russell through its own disciplinary processes.
Cheryl Burr, assistant director of the HMRC’s fraud investigation service, said: “This was a blatant attempt by Russell to pocket cash that should have gone to funding our vital public services.
“If you know of anyone committing tax fraud you can report them by calling our Fraud Hotline on 0800 788 887.”
Following an in-depth investigation, the Royal Navy confirmed Russell had no entitlement to the tax relief repayments he claimed because all of his expenses were paid back by them.
He was arrested and charged in November 2016 and was finally sentenced at Dunfermline Sheriff Court on Wednesday.
Sheriff Charles Macnair imposed a community payback order of 300 hours unpaid work on Russell which must be completed within a six-month period.
Now the criminal case is over, the Royal Navy can now decide if it wants to start its own disciplinary proceedings against Russell which could see him – in the worst case scenario – thrown out of the armed forces.
A Royal Navy Spokesperson said: “The Service is now considering the effect of this conviction on his career.”
