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Birmingham accountant imprisoned for tax fraud 10 May 2013

A chartered accountant from Birmingham has been jailed for three years for his part in a £1m tax fraud case.

Muhammad Butt, 36, of Reservoir Road in Birmingham, a proprietor of accountancy firm ABMG Business Services, was asked by HM Revenue & Customs (HMRC) to provide documents he held for two businesses that were under investigation.

According to HMRC, he refused to hand over the paperwork despite receiving a court order in March 2010.

The businesses, Chand Bridal by Khushboo and Kushboo by Chand, were owned by Amer Razar Ahmed, 39, of Kingswood Road in Birmingham, who failed to tell HMRC about them.

He eventually declared the Chand Bridal by Khushboo business but, with his accountant Butt, submitted VAT and tax returns which under-declared turnover and profits estimated to be more than £4m.

Butt was arrested in August 2010 and paperwork and computers were seized from his home and business premises.

He was found guilty and sentenced to three years in prison.

Ahmed was deemed unfit to stand trial but was found by a jury to have committed the act of failing to declare the correct level of income for his businesses over a number of years.

He was also found to have failed to pay “substantial” levels of income tax and VAT due to HMRC, believed to be in excess of £1m.

Ahmed was sentenced to a two-year supervision order, which includes provisions under the Mental Health Act to receive treatment to improve his health sufficiently to be able to answer fully the charges he faces.

Adrian Farley, assistant director of criminal investigation for HMRC, said: “Butt abused his position and profession. He continually failed to meet his legal responsibilities to provide information in a bid to cover up a serious crime, against the British taxpayer.

“His deceit has landed him behind bars and justice has been served.”

 

 

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