IT expert found guilty of £2m tax evasion

A BUSINESSMAN who failed to declare almost £2 million of income received from an IT consultancy business has been found guilty of income tax evasion.

Stephen Maxwell, 53, from Dalbeattie in Dumfries and Galloway, appeared at Kirkcudbright Sheriff Court on Monday following an investigation into his business records and tax declarations by HM Revenue & Customs (HMRC) investigators.

Between 1999 and 2008 Mr Maxwell worked as an IT consultant for City of London banks. Fees were paid to companies – of which he was a hidden beneficiary – registered in Gibraltar and the Isle of Man. And from 2005, the income was paid to a UK registered company which never made any tax returns.

David Odd, assistant director of operations for 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.”

Maxwell was remanded in custody at Kirkcudbright Sheriff Court until 26 April when he will be sentenced.