Tax cheat ordered to pay £1.2 million

3 Nov 2006 12:15 PM

Company director Nicholas Davies, from Portsmouth, was ordered to pay £1,233,485.69 and given a 2 year suspended sentence at Southwark Crown Court on Monday 31 October 2006. He had previously been found guilty on 3 October 2006 of Cheating the public revenue under common law between 3 April 1989 and 5 October 2004.

The Court heard that the fraud centred on Mr Davies transferring commission payments from his German suppliers, correctly due to his Company Non-Corrosive Control Lines Ltd, to a series of bank accounts outside the UK in his name. By the time of his arrest in October 2004, Mr Davies had accumulated nearly £2.7 million in these accounts. As well as not declaring the correct Company profits, he did not declare the interest that he had earned on the evaded profits on his own tax returns. The final loss to the Crown was over £1.2 million.

Joe Rawbone, HMRC Investigator said: "This has been a complex investigation requiring visits to tax jurisdictions outside the UK to obtain evidence. It has been proved that Nicholas Davies knowingly and deliberately set out to commit fraud. The efforts made to secure the guilty verdict reflect the seriousness of the crime, and should serve as a warning that HMRC will pursue those who attempt to steal money in this way."

His Honour Judge Hardy said, in sentencing Mr Davies: "Normally this offence would be one that merited a substantial custodial sentence because of the seriousness of dishonesty, but (the Judge) bore in mind a number of mitigating circumstances."

This case was successfully prosecuted by the Revenue & Customs Prosecutions Office (RCPO). RCPO is an independent prosecuting authority that reports to the Attorney General, and is responsible for the prosecution of all HMRC cases in England and Wales.

Notes for editors
1. Nicholas Andrew Hornby Davies, DoB 23 August 1947, of Portsmouth, Hampshire.

2. Davies was also ordered to pay a £100,000 fine and £75,000 costs.

3. The Revenue & Customs Prosecution Office (RCPO) was created by Royal Assent on 07 April 2005. It is an independent prosecuting authority reporting directly to the Attorney General.

4. HM Revenue & Customs Tax Evasion Hotline is a confidential Helpline for people who know somebody who's not paying their tax. No information, however trivial it may seem, is too small. It could be the key to stopping fraudulent criminal activity. The Hotline can take your call on 0800 788 887 and lines are open Monday to Friday 8am to 8pm, Saturday and Sunday 8am to 4pm.

Issued by HM Revenue & Customs Media Relations Team

Website www.hmrc.gov.uk
HM Revenue & Customs Tax Evasion Hotline Tel: 0800 788 887