The Courier & Advertiser (Fife Edition)
Accountant facing jail for failing to pay court compensation order
An accountant who created a scheme to cheat the HMRC out of £22,000 is facing jail for failing to pay a court compensation order.
Former taxman Derek Foster explained to Perth Sheriff Court he could not prove he had paid back any money because his brother had been making payments on his behalf.
And he could not get proof from his brother, because he does not get on with him.
Foster, 49, narrowly avoided being locked up when he appeared before Sheriff Euan Duthie.
The sheriff told him he would have been jailed there and then, if it were not for the fact he needed to make arrangements for his daughter.
The court heard Foster exploited his knowledge of lax system checks to con the HMRC into paying out regular rebates.
He immediately blew the money on an online betting site.
Foster, of Rae Place, Perth, was originally ordered to pay back £11,700 compensation.
But the bill has risen to nearly £19,000 because of interest accrued since the order was made in 2019.
Solicitor Pauline Cullerton, defending, told the court: “The saga continues.
“This case was heard in April but was continued to today for further confirmation from the HMRC.
“Mr Foster has had no joy with HMRC.
“He advised me this morning that the payments to HMRC were made by his brother.
“I had asked Mr Taylor at the last hearing to bring along his bank statements, so we could see the money going out of his account.
“But it is his brother who has made payments of these sums.”
When asked if the brother could provide proof of payment, Ms Cullerton replied: “Unfortunately, he doesn’t get on particularly well with his brother.”
“This is the brother who has been making payments on his behalf?” Sheriff Duthie asked.
“Yes,” said Ms Cullerton. “He has asked for statements and nothing has been forthcoming.”
Fiscal depute Elizabeth Hodgson confirmed that the HMRC had no record of any payments from Mr Foster.
Sheriff Duthie said: “The obvious course of action for me is to revoke the order made previously and impose a period of imprisonment.
“I think we are at that stage now.”
The sheriff was told Mr Foster would need to make arrangements for his daughter.
“In the circumstances I will continue this matter,” said Sheriff Duthie.
He told Foster: “It is up to you to demonstrate that these payments have been made at your behest.
“And if you are unable to do that in four weeks’ time, you will not be going home from this court.
“In fact, were it not for what was said about your daughter, you would not have been going home today.”
Foster was ordered to appear at the next hearing on July 21.
The court previously heard Foster was unemployed and had less than £10 in his account when he convinced HMRC he was earning more than £20,000 a year working for corporate giants Shell, the Wood Group and Hat-trick Bruce.
He carried out his con for 20 months and was given rebates of up to £9,000 at a time without any checks being carried out by tax inspectors.
Foster, who also previously worked for BA at Gatwick Airport and for Perth and Kinross Council, was only caught when he ramped up the amount of money he was claiming and sparked an investigation.
He admitted forming a fraudulent scheme to obtain £22,000 of income tax repayments between January 2013 and September 2014, as well as setting up online selfassessments in which he claimed to be working as a book-keeper for himself and a number of other companies.
At a previous hearing, Sheriff Lindsay Foulis noted his previous convictions for fraud, embezzlement and shoplifting.
“There is an element of Walter Mitty about him,” he said.