A Perthshire businessman has been jailed over an elaborate £200,000 VAT fraud scheme.
Scrap metal merchant Russell Goodenough was at the centre of an HM Revenues and Customs (HMRC) investigation after it emerged he had not paid taxes he was charging his customers.
The 48-year-old, from Auchterarder, was the sole director of T’ir Trading Ltd. He set up the company at his former home in Ellon, Aberdeenshire, seven years ago.
Goodenough imported scrap metal from overseas on which no VAT was payable.
However, when he sold the goods onto other firms, the invoices stated that VAT was included.
He appeared at Aberdeen Sheriff Court in December and admitted charging customers £205,600 for VAT which he kept rather than pay to the taxman.
He returned to the dock on Monday and was imprisoned for 18 months.
Cheryl Burr, assistant director at the HMRC’s fraud investigation service, said: “Goodenough deliberately lied about his trade with European countries to throw us off the scent of his premeditated VAT evasion, but now he is paying the price behind bars.”
She said: “The VAT he charged should have been used to fund the public services used by us all, but Goodenough decided to pocket the lot.
“HMRC will continue to pursue criminals who attack the tax system.”
Fiscal depute Katy Begg told the court when HMRC officers visited Goodenough’s property but nobody was home.
“He was later advised that HMRC required sight of his business record,” she said.
The court heard that Goodenough told officers he bought and sold scrap metal, but denied that he was trading overseas.
He was detained by the HMRC, interviewed under caution and charged with fraudulent evasion of VAT.
Solicitors for Goodenough told the court that the scheme wasn’t set up to commit fraud.
They said Goodenough used the money to keep his company afloat.
