VAT fraud businessman Israr Javid faces jail in UK
Posted on 09 August, 2011
A Glasgow businessman, Israr Javid, 42, has been convicted of a £760,000 tax fraud and was also found guilty of planning to defraud HM Revenue and Customs of a further £3.5m.
Modus operandi
Mr. Javid indulged in the VAT scam while working as a company secretary and director of Blueridge Brokers. He bought computer components in the Republic of Ireland on which no VAT was charged. Javid then used false invoices claiming that VAT had been paid, saving his company £760,212 in VAT between November 2001 and March 2002. Javid claimed he was trading legitimately and that the scam was in Ireland and not Scotland.
Our Comments:
When it becomes difficult to hide the frauds and conviction rate goes up that the fraudsters stop. Law enforcement agencies and corporate entities therefore must send the message that fraud if committed will in all probability be discovered and that there will be zero tolerance for the frauds.