Accountant convicted of £120k fraud
AN ACCOUNTANT who “knew the system inside out” cheated HM Revenue & Customs out of £120,000 and tried to derail their investigation into him.
Cardiff Crown Court heard Martyn Arthur deliberately covered his tracks by keeping incomplete records then sent threatening and bullying emails to HMRC staff and prosecutors.
In his sentencing remarks Judge Michael Fitton QC told the defendant: “You are a man who has destroyed your own reputation. You are now professionally worthless.”
The charges of cheating the public revenue related to the five-year period between 2008 and 2013.
Anna Midgley, prosecuting, said Arthur worked as an accountant throughout his career, starting out with the Inland Revenue – now HMRC.
Judge Fitton noted that meant he “knew the system inside out” and had written a book called The Taxpayer Strikes Back about how to “stand up to” the tax authority. Prosecutors suggested he was in a position of trust and responsibility in his more recent role as a self-employed tax adviser.
Ms Midgley said: “In essence, he submitted inaccurate tax returns... in order to avoid paying the tax that was due.” She told the court he covered his tracks by deliberately keeping incomplete records, using multiple accounts and moving money between them.
The court heard HMRC launched a civil inquiry in 2012 and Arthur’s behaviour went from unco-operative to deliberately hostile and aggressive in a bid to put off investigators.
Judge Fitton said he “bombarded” HMRC with emails “to make yourself such a pain for them to deal with, you hoped they would regard you as not worth it and give up and go away”.
Prosecutors said he sent so many emails he made the inquiry far more complicated and time-consuming than it otherwise would have been.
The court heard he also subjected his GP and psychiatrist, who were providing medical reports to the court, to a “barrage” of emails.
During his trial, the defendant suggested his records had been stolen and also blamed members of staff for inaccurate record-keeping.
Ms Midgley said the loss to HMRC was £88,500, plus interest of £31,400, making a total of nearly £120,000.
The court heard Arthur was declared bankrupt in 2008 and disqualified from being a company director but continued to run one of his companies in his wife’s name.
Arthur, 68, from
Bryneglwys in Newton, Porthcawl, denied two counts of cheating public revenue but was found guilty following a fourweek trial. He initially admitted acting as a director while disqualified but withdrew his plea, then pleaded guilty again midtrial, saying he realised he had no defence.
Judge Fitton said he had read medical reports and a pre-sentence report and took into account his caring responsibilities and own health conditions.
The court heard he had been drinking half a bottle of spirits a day since he was 18 and was taking steps to address his alcohol dependency.
Arthur said: “I am very sorry. I was plain stupid. I am genuinely ashamed to find myself in this position.”
Judge Fitton said it had been a “long and complex case” and told the defendant: “You are a man who has destroyed your own reputation. You are now professionally worthless.”
Arthur was given an 18-month prison sentence, suspended for 18 months, and must complete 20 days of a rehabilitation activity. He was disqualified from being a company director for five years and there will be a hearing under the Proceeds of Crime Act on January 6.