£2M RUNAWAY TAX CHEAT EXTRADITED AND JAILED
11 Feb 2003 05:45 PM
A company director who fled to Spain when facing charges of
Conspiracy to Defraud the Inland Revenue has been extradited, pleaded
guilty and was today jailed for 21 months at Swindon Crown Court.
Confiscation order for £367,055 plus costs of £51,940 were also
agreed. Failure to pay these amounts within six months will result in
an additional three years jail sentence.
57 year old John Lillie, of Prospect Hill, Swindon was originally
charged along with two co-conspirators and faced trial in April 1996
in relation to a £2million tax fraud.
Lillie was extradited from Spain in August 2002 and has since been on
remand at Dorchester and latterly, Bristol prisons awaiting trial.
Whilst Lillie's co-defendants, Andrew Perkins and Wasil Khan, were
found guilty and sentenced at the time, Lillie absconded and a bench
warrant was issued for his arrest.
The Inland Revenue are clamping down on tax cheats who have fled the
country and are focusing their attention on these people.
In passing sentence, His Honour Judge J. McNaught said
"... You effectively owned the company and must have played a
significant part in this sophisticated operation which benefited you
to the tune of hundreds of thousands of pounds and cost the country
many thousands of pounds in lost taxes. Although you have pleaded
guilty, a minus factor is that you fled the country."
DETAILS
1. John Lillie and Andrew Perkins ran a company in Swindon called
Butter Oil UK Ltd that was principally engaged in the processing of
dairy products, mainly the conversion of butter into butter oil and
the marketing of the finished product. In undertaking this business,
the company itself became entitled to claim an EEC subsidy paid by
the Intervention Board in Reading. Lillie owned the company and
Perkins was the General Manager.
2. The tax loss is calculated at £2,079,858. Accrued interest of
£912,752 brings the total loss to the Crown to almost three million
pounds.
3. The defendants operated by using false invoices and furnishing
false accounting information.
4. On 17th May 1996 at Swindon Crown Court, Perkins and Khan pleaded
guilty to various Charges of conspiracy and signing false documents.
- Perkins was sentenced to two years imprisonment and ordered to pay
£50,000.
- Khan escaped a custodial sentence but was fined £100,000 and
ordered to pay £50,000 in costs.
- Lillie absconded before the proposed first day of the trial. A
Bench Warrant was then issued for his arrest but his exact
whereabouts were unknown.
NOTES FOR EDITORS
1. John Lillie pleaded guilty to two counts of Cheating Her Majesty
The Queen and the Commissioners Of Inland Revenue, contrary to common
law and one count of Conspiracy to make use of false accounting
documents in contravention of section 17(1)(b) of the Theft Act 1968,
contrary to section 1(1) of the Criminal Law Act 1977.
2. The conspiracy offences occurred between October 1st. 1987 and
September 30th. 1990. The charges of Cheating relate to offences on
or about December 24th. 1991 and November 12th.1992.
3. This case demonstrates the Inland Revenue's ability to bring to
justice those who break the law in order to avoid contributing to the
UK needs. It shows that seeking refuge outside of this country does
not mean escaping justice.
4. Although this particular case was commenced some time ago,
extradition of tax cheats will become easier by means of the European
Arrest Warrants when the UK extradition Bill becomes law.
Non-media enquiries to: 020 7438 6420/6425
www.inlandrevenue.gov.uk
Inland Revenue
Press Office
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Somerset House
London WC2R 1LB
Web: www.inlandrevenue.gov.uk