Four years in jail for £419,000 fraud

A security firm director convicted of a £419,000 VAT fraud has been jailed.

Kevin McKay was the sole director of IPPS Ltd, which provided personal protection services, doormen for pubs and clubs, and guards at building sites, mainly in the north-east of Scotland.

The 46-year-old, from Aberdeen, was found guilty at the city’s sheriff court last month of fraudulently evading VAT to the tune of more than £419,000.

He was sentenced to four years in jail when he returned to the court yesterday, HM Revenue and Customs (HMRC) said.

McKay was detained by HMRC officers in May 2013 and searches of his home, car and business premises were carried out.

Officials seized business and financial records from the premises, his clients and bank as part of their investigation.

HMRC said he was found to have charged his clients VAT but then lied on his tax returns, claiming his business was making less than a 10th of its actual sales.

In 2010, McKay also transferred over £100,000 of his criminal profits to a bank account in Romania, HMRC said.

He was convicted last month of the fraudulent evasion of the tax. He was also found guilty of being knowingly concerned in removing criminal property of about £100,000 from Scotland, contrary to proceeds of crime laws.