A COUPLE who ran a newsagents cheated the taxman out of more than £1 million to fund luxury holidays, home improvements and their children’s private education.
Mohammed Arshid, 60, and his wife Maqsoodan, 57, have been banned from acting as company directors following an investigation into their business affairs by the Insolvency Service.
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The probe found that Arshid, who was jailed last year for perjury, had hidden profits he made at his shop, Nethergate Newsagents in Dundee, for 17 years.
He submitted false information to HM Revenue & Customs (HMRC) resulting in lost revenue on PAYE Tax, National Insurance contributions, VAT and Corporation Tax totalling £1,020,423.
He has been handed an 11-year ban from running a company. His wife was disqualified for two years for failing in her duties as a director which allowed Arshid the freedom to commit the offence.
The couple have a home in the affluent Broughty Ferry area of the city and lived a lavish lifestyle.
They admitted to investigators that the missing money was used to achieve personal gain, including home improvements, private education, holidays and topping-up of employee wages.
Robert Clarke, Group Leader of Insolvent Investigations North at the Insolvency Service, said: “Directors who put their own personal financial interests above those of customers and creditors damage confidence in doing business and are corrosive to the health of the local economy.
“These bans should serve as a warning to other directors tempted to help themselves first; you have a duty to your creditors and if you neglect this duty you could be investigated by the Insolvency Service and removed from the business environment.”
Arshid’s business, Nethergate Newsagents Limited, was placed into compulsory liquidation in July 2014, with debts of £1,044,973 following a court petition by HMRC.
The liquidation took place after HMRC conducted a five-year investigation during which it established that Mohammed Arshid caused the company to under-declare and conceal liabilities.
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For 17 years, between tax years 1996/1997 and 2012/2013, he concealed liabilities owed to HMRC for PAYE Tax and NIC through submitting false P35 End of Year Returns.
For a period of 64 VAT quarters between February 1997 and November 2012, he concealed liabilities owed to HMRC for VAT through concealing sales.
He also submitted incorrect company tax returns and understated the company’s sales resulting in lost revenue.
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In August 2015, Arshid was jailed for 17 months after he admitted lying under oath to help clear a man accused of making a murder threat.
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