How many barristers are currently sweating bullets about a visit from the taxman?
Gray's Inn barrister Edward Agbaje has been sent to prison for 18 months for charging clients £59k of VAT over seven years which he failed to pass on to the taxman. Whoops. HMRC found out when its investigators paid a "routine" visit to his chambers, and discovered he was still using his invalid VAT number on invoices despite being deregistered in 2005.
Earlier this month, following HMRC's crackdown on the profession, Rohan Pershad QC donned his prison togs to start his three and a half year stretch for avoiding over £600k of VAT over a 12 year period.
Agbaje was made bankrupt not once but twice, in 1998 and in 2008, for not paying his income tax (and he was found to be £18k short in his income tax payments this time around too). Interestingly, it seems no-one picked up on his VAT scam on either occasion. But now they have. Too late for the treasury though - Agbaje claims to have gambled away all the money.
You'd think they would know better. Pershad specialised in financial frauds, and Agbaje in criminal law. But apparently not. The question is - how many more are out there, waiting nervously for a "routine" visit?
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The money that the Exchequer is owed and will not recover must be laid partly at HMRC's door for not noticing its own red flag.
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