DEALER JAILED IN CAR IMPORT SCAM

5 Oct 2005 04:15 PM

A Lanarkshire car dealer was sentenced today (Wednesday) at Edinburgh High Court to a total of two years and three months imprisonment after pleading guilty to evading £589,952 VAT over a three-year period.

52-year-old John Gilmour formerly of Heathfield, Gillhead, Wishaw was arrested by HM Revenue & Customs, (HMRC) investigators in February 2003, when he returned to the UK from Cyprus. Gilmour had been charged with evading revenue on the importation of over 400 cars between May 1999 and June 2002.

HM Revenue & Customs Head of Investigation Scotland, Gordon Miller said:

"Mr Gilmour carried out a sustained and deliberate attack on the VAT and vehicle licensing systems in the UK over a three-year period.

HM Revenue & Customs are determined to support the legitimate motor trade and expose and prosecute those who seek to undermine honest traders and cheat the public.

Gilmour used the VAT evaded to fund his own lavish lifestyle and undercut the legitimate motor trade. In doing so he duped hundreds of customers who bought illegally imported cars from him, believing that he was passing on the VAT he charged them.

If you know of suspicious activities or have concerns about a specific trader, call our 24-hour freephone 0800 59 5000, e-mail customs.confidential@hmce.gsi.gov.uk or fax free on 0800 5280506. For details or advice on importing vehicles contact the HMRC National Advice Service on from 8.00am - 8.00pm Monday to Friday on 0845 010 9000."

The charges relate to the importation of cars from Cyprus, which Gilmour's companies, Elite 4x4 and Gillhead 4x4, sold on to the public without paying the VAT collected from his customers.

Following his arrest, HMRC investigators began a financial investigation to assess the benefit Mr Gilmour has had from his criminal conduct and a confiscation hearing under the Proceeds of Crime Act 2002 is set for 17 October.

Notes for editors

1. The fraud was perpetrated in different ways. Some cars were falsely declared as second hand with VAT paid only on the fictitious profit margin, instead of the full selling price. Alternatively false invoices in the names of non-existent or redundant companies were created and used by Gilmour to reclaim VAT to which he was not entitled. In the majority of cases he simply suppressed the whole transaction and stole the VAT paid by his customers.

2. Customers buying cars imported from outside the EU, such as those sold by Gilmour, have experienced difficulty with warranty claims and trade in values.

3. The cars were ordered by Gilmour, who had the information necessary to register them in the customers' name, and obtain a registration number. He would then tax the cars and send couriers armed with the tax disc and registration plates to collect them from Cyprus and drive them overland to the UK. Revenue & Customs officers found the machinery to manufacture registration plates at his home.

4. The Proceeds of Crime Act 2002 gave Revenue & Customs and the police extended powers to seize money suspected of being either the proceeds of any crime or for use in any crime. These powers apply to all crime, and are enforceable inland as well as at the borders. Revenue & Customs report their cases in Scotland to the Procurator Fiscal Service and Crown Office.

5. Law enforcement agencies in the UK confiscated over £63 million from criminals in 2003-04 of that £36 million was seized by Revenue & Customs.

Issued by HM Revenue & Customs Media Relations Team
Website: www.hmrc.gov.uk
Customs Confidential Hotline Tel: 0800 59 5000