A MILLIONAIRE businessman described by Scottish Labour leader Anas Sarwar as “Scotland’s Donald Trump” could be facing jail after admitting filing false VAT returns.

Mohammed Ameen Mirza, 58, submitted bogus declarations for a store in Glasgow’s Gorbals and for another in Cambuslang, South Lanarkshire, in April 2014.

There was a £4m difference in sales resulting in non-payment of £725,000 due in VAT.

The grocery tycoon was charged with evading VAT by failing to declare earnings in 2015.

Mr Mirza had been photographed in the past with former Labour Prime Minister Gordon Brown and former MP Mohammad Sarwar, the Scottish Labour leader’s father, in 2014.

After he was charged he continued to be active in politics, acting as the Scottish president of the right-wing Pakistan Muslim League party.

In March 2017, Anas Sarwar attended a dinner with him in a Glasgow restaurant for a visit by Sardar Asad Khan Balooch, the new mayor of Sahiwal in southern Punjab.

Anas Sarwar gave a jokey introductory speech which was shown on an Asian TV channel.

Indicating Mr Mirza, sitting two places to his left, he said: “Thank you to the President of the Muslim League. I’m delighted that Scotland’s Donald Trump is with us today.

“He also wants to build a wall, but a wall between India and Pakistan, and ‘India’s going to pay for it’ is the campaign there.

“No, genuinely, I mean Mirza Sahib is a perfect demonstration, Mayor, that no matter what our political affiliation may be in Pakistan, or indeed what our city or regional affiliation may be in Pakistan, when it comes to the issues of Pakistan, or indeed welcoming guests from Pakistan, we are one united community.”

At the time, the SNP called the comments “distasteful, even if made in jest”, while Labour pointed out an SNP councillor was also present and said Mr Sarwar had been invited to represent the Labour Party several months earlier with the mayor of Sahiwal. 

The Daily Record and Times have now reported Mr Mirza may face jail after pleading guilty at Glasgow Sheriff Court to submitting VAT returns to HMRC which were false and not an accurate reflection of sales.

The period covered was from December 2011 to April 2014.

Mr Mirza had also faced charges of possessing and concealing £474,800 of criminal property held in one of the shops but a not guilty plea was accepted.

He will be sentenced at a later date, but tax evasion can result in fines and prison.

The court heard Mr Mirza had operated two Nisa stores as a sole trader since 1999 and hired a bookkeeper and an accountant to handle his business financial affairs.

In 2012, HMRC contacted his accountant saying the shopkeeper had not made any recent VAT declarations and asked for business records, invoices, expense receipts, till rolls and weekly cash sheets to be produced.

The submissions were finally made in April 2014 and the accountant stated Mr Mirza agreed the figures and that to his knowledge the returns were “true and accurate”.

HMRC then compared sales data from Nisa with the quarterly VAT returns.

Prosecutor Graham MacDonald said: “Due to the extent of the discrepancy apparent, the matter was passed to the criminal investigation team for review.”

After search warrants were granted in 2015, sales and business records were checked and it was found that Mr Mirza had declared sales totalling £5,073,510.

But the court heard £9,467,167 should have been declared, meaning there had been “undeclared” sales of £4,393,657.

The VAT due was £1,266,955, but Mr Mirza declared VAT payable to HMRC of £541,896.

Mr MacDonald said: “Mirza obtained an advantage in the sum of £725,059 since it was not paid to HMRC by him following the submission of erroneous returns in April 2014. 

“The sum remains unpaid, which represents a material benefit to Mirza.

“It is apparent that the VAT returns submitted were false as, on average, 46.4% of the sales data was not included. This is as a result of the reckless approach taken by Mirza to the management of his business records during this time.”

Mr Mirza, who lives in Glasgow’s Pollokshields, faces a separate hearing under the Proceeds of Crime Act.

Sheriff Andrew Cubie deferred sentencing for reports and continued Mr Mirza’s bail.

Scottish Conservative shadow justice secretary Russell Findlay MSP said: "When Anas Sarwar was seen laughing and joking alongside an alleged fraudster it confirmed his poor judgment. 

“Now that Mohammed Ameen Mirza has finally been convicted, maybe the Scottish Labour leader can explain what he found so funny.

"It is hard-working Scots who foot the bill when fraudsters cheat the country out of vast sums of money."

A Scottish Labour spokesperson said: “Mr Sarwar was invited to represent the Labour Party at a dinner with the mayor of Sahiwal, which he accepted.

“There were other guests separately invited by the organisers who attended this dinner, such as representatives from the SNP and Pakistani politics.”