IT consultant guilty of tax evasion

An IT consultant has been found guilty of tax evasion after failing to declare almost £2 million of income.

Stephen Maxwell, 53 from Dalbeattie, Dumfries and Galloway, was found guilty following an investigation into his business records and tax declarations by HM Revenue and Customs (HMRC) investigators in Leeds. Between 1999 and 2008 Mr Maxwell worked as an IT consultant for City of London banks, earning up to £800 a day. Fees were paid to companies - of which he was a hidden beneficiary - registered in Gibraltar and the Isle of Man. From 2005 the income was paid to a UK registered company which never made any tax returns.

During the nine year period, the total loss to the exchequer was £635,015.

After a trial lasting over six weeks, jurors took just over an hour to find him guilty of all charges relating to a complex scheme of companies through which earnings were channelled. Money went from the consultancy work for the banks to Gateway 3000 Ltd via a number of companies in an attempt to stop HMRC finding out where it went.

Gateway 3000 Ltd was also involved in the purchase of a substantial property. Mr Maxwell had claimed that he had no control over the funds and was only an employee of the company.

David Odd, Assistant Director Operations for HM Revenue & Customs (HMRC) in Scotland, said: "This was a case of deliberate and systematic fraud. The tax system depends on people being honest but Maxwell consistently tried to conceal his income.

"Income tax fraud is not a victimless crime and HMRC take a very serious view of anyone who acts in this manner. For anyone choosing not to pay the tax they owe, this case proves that we will vigorously pursue them and bring them to justice."

Mr Maxwell was remanded in custody at Kirkcudbright Sheriff Court until April 26 for preparation of background reports.

A Proceeds of Crime hearing will take place in the summer.