Desperate businessman in £98k tax evasion bid
AN established businessman has been handed community service for tens of thousands of pounds worth of tax evasion.
Brian Buchanan appeared at Glasgow Sheriff Court for sentencing after pleading guilty to knowingly evading Value Added Tax amounting to £98,729.
The court was told how the 57-year-old director of BRB Electrical Ltd amended sales documentation from July 2011 to falsely show that work carried out was standard rated for VAT purposes and included this information in the VAT returns.
Buchanan admitted to amending sales documents to HMRC after they picked up on unusual activity on one of his company’s accounts.
The procurator fiscal said that HMRC had been conducting an investigation involving fraudulent activity and decided to visit the accused’s home.
They conducted discussions with the company’s bookkeeper and carried out examinations.
During this time Buchanan, of Woodburn Road, Newlands, approached one of the officers and admitted that he had been amending the documents.
Following this HMRC concluded their investigation.
The defence agent told the court that the company had recently come under financial pressure and Buchanan feared that he would have to lay off staff.
He added that his client had worked as an electrician for six years in 1979 before going on to be employed with a variety of companies.
His company BRB Electrical Ltd carries out sub contracts for companies including British Gas and various housing associations where they install insulation, gas, central heating and wiring.
In order to cover his losses, the accused took out a cash overdraft and borrowed money from his wife and amended documents to show a zero rating in VAT to stop the company from folding.
The defence agent explained that the investigation was the first of its kind into the business in the years since it was established.
Following the findings a company which the business had been working with, terminated their contract leading to a dispute and redundancies.
Buchanan’s son was forced to take over the family business, despite having no training, leading to a downturn in business.
He added: “Mr Buchanan is aware that he will face further difficulties competing for contracts and realises that subsequently further approaches will be rejected.
“The business had previously sponsored a Castlemilk football club.
“When I became involved in the case we carried out thorough analysis.
“HMRC concluded its investigation at the end of 2015 and imposed no penalties at civil procedure as the director of company confessed.”
Buchanan also repaid a significant amount of the money.
The Sheriff described the case as “a very serious matter involving a breach of trust” adding that there were a lot of mitigating circumstances which led to the accused carrying out the fraudulent activity.
He commented that Buchanan had showed a considerable amount of remorse.
As a direct alternative to custody he was ordered to undertake 240 hours of unpaid work over a period of nine months.