Businessman in £215,000 tax fraud avoids jail term

A Fife man, who defrauded the taxman of £215,000 in VAT over a period of more than four years, has avoided a jail term.

Thomas Connelly, 50, of Altyre Avenue, Glenrothes, ran a business called TS Connelly, which was involved in supplying casual labourers.

He previously admitted that between March 1 2011 and October 27 2015 at his home address and at Benarty Avenue, Crosshill, he was knowingly concerned in the fraudulent evasion of Value Added Tax amounting to £215,000 by failing to register and account for VAT.

Dunfermline Sheriff Court heard the £215,000 had now been paid and the company ceased trading when the offence came to light.

Depute fiscal Claire Bremner said VAT inspectors came across a large number of invoices from the business when they carried out a routine operation at another firm.

Follow-up checks showed TS Connelly was not VAT-registered and never had been.

Defence solicitor Kerr Sneddon said: “It was his late father’s company which had traded for many years without being registered for VAT.

“It was a situation he fell into when his father died and he took over the running of the business.

“It was a crime of ignorance. It would have been clear to anyone who took an interest in these matters that VAT would have to be paid.”

Sheriff Kevin Veal imposed a community payback order with 280 hours of unpaid work.