Fife hotelier in £380k tax fraud jailed

A vitalFife woman who tried to hide a £380,000 tax fraud by claiming documents had been destroyed in a flood has been jailed for two years.

Lesley Dykes, 66, of Markinch, stole the money during a five-year fraud while running The Crusoe Hotel in Lower Largo and Dunnikier House Hotel in Kirkcaldy.

A spokeswoman for HM Revenue and Customs (HMRC) said the public purse was the victim of her crime and the money would have paid the wages of 15 nurses.

She was caught out in an investigation by the tax agency.

Dykes submitted false returns for the hotels between August 2011 and July 2014, and then failed to submit any returns at all from August 2014 to July 2016.

Justice caught up with her after HMRC officers raided her home in Markinch’s Mount Frost Place as well as the two hotels on August 9 2016.

Sales records from both hotels were taken by officers – documents that Dykes had previously told HMRC were destroyed in a flood.

Dykes pled guilty to VAT fraud at Kirkcaldy Sheriff Court in November and has now been sentenced to two years behind bars.

Cheryl Burr, assistant director of HMRC’S Fraud Investigation Service, said: “This was a cynical and contrived plot to steal money that helps fund our public services.

“The tax this hotelier stole is the equivalent annual salary of 15 newstart nurses in Scotland.

“HMRC will continue to pursue the minority of criminals who attack the tax system and we ask anyone with information about suspected VAT fraud to report it to HMRC online or call our fraud hotline on 0800 788 887.”

During the day of the raid, documents, mobile phones and computers were seized from the three premises.

Dykes was charged with VAT fraud the same day after being interviewed under caution.

Sineidin Corrins, procurator fiscal for Tayside, Central and Fife, said the investigation into Dykes’ activities had been “complex and lengthy”.

“The sentence should serve as a warning to others who seek to steal from the public purse,” she added.

“We will continue to work in partnership with HMRC to ensure those who seek to profit from VAT fraud are brought to justice.”

‘CYNICAL AND CONTRIVED’: Lesley Dykes on her way to Kirkcaldy Sheriff Court.