Director must repay £150k or face prison
A CARMARTHENSHIRE company director, who funded her extravagant lifestyle through tax fraud, must repay more than £150,000 or face 12 months behind bars.
Mandy Jayne Galinsky, 54, from Ammanford, failed to pay VAT or the tax due on her earnings and the profits from her companies Penybanc Car Sales Limited and Ammanford Metal Recycling Limited with her business partner Richard John Baylis Safadi, 48, from Carmarthen.
She admitted tax fraud and was sentenced to 10 months in prison, suspended for 18 months in July last year.
Now she has been ordered to repay £150,506 or face 12 months in prison.
Colin Spinks, assistant director, Fraud Investigation Service, HMRC, said: “Galinsky lived a life most can only dream of, but funded it through fraud. She stole from the vital public services we all rely on.
“She was caught, punished and will now repay what she stole.
“If you know of anyone who is evading tax please report it online or ring the Fraud Hotline on 0800 788 887.”
Safadi and Galinsky charged customers VAT, but only paid a fraction of it to HMRC and evaded paying Corporation Tax on company profits.
Galinsky claimed she had not earned a penny since 2009, but in fact earned more than £500,000.
The pair tried to cover up their frauds by often changing the companies’ names, directorships and shareholders.
Galinsky enjoyed a lifestyle that included holidays, credit card bills and loan agreements for vehicles, all funded from company expenses. She also owned a holiday home in Kenya and drove high-end cars.
After conviction, HMRC can apply for a court to rule on how much the defendant profited from their crimes and how much they should repay based on the value of their assets.
Galinsky was ordered to repay the money at Mer- thyr Crown Court on October 25 from her assets that include personalised number plates and a property in Kenya. She has already repaid £80,502 of the money owed.
Richard Safadi has paid back £888,142.82.
He was sentenced to 24 months in jail, suspended for two years.
Mandy Galinsky at an earlier court hearing.