Accountancy: Accountant jailed for eight years for fraudulent returns

Charalambous completed over 6,000 Self Assessment tax returns for clients which included fictitious expenses claims in order to increase the tax repayments due.

He also understated the income he received from client fees on his personal returns and failed to register, declare and pay VAT due on his accountancy firm Charltons.

Many of Charalambous’ clients were from other EU countries and had little understanding of the UK tax system.

The court heard how Charalambous would submit tax returns for his clients to the Inland Revenue (IR) (up to April 2005) and HMRC (from April 2005) without showing his clients what information he was including. He would then receive repayments from IR/HMRC, deduct a minimum of 15% fee and repay the remainder to his clients, who would not question the amount refunded as they trusted him to complete the returns correctly. The total amount of repayment claimed by Charalambous on his clients’ behalf was GBP11,222,472.

Between 1997/98 and 2004/05, he understated client fee income on his own Self Assessment tax returns by GBP807,406. He also failed to declare and pay £180,082 VAT due to HMRC.

He was found guilty on six counts of cheating the public purse at Blackfriars Crown Court following a trial that lasted seven weeks.

His Honour Judge Richardson said: "The offences are more serious as you were a chartered accountant. HMRC ought to be able to trust you as should your clients. You exposed them to the dishonesty that you practice. With tax enquiries, you responded with evasion and lies."

A Confiscation Order is being pursued.

Charalambous has been an accountant for over 30 years. He was the sole proprietor of Charltons Accountants. From 1979 to 2005, he was a chartered accountant. In November 2005, he was excluded from the Institute of Chartered Accountants in England and Wales for failing to co-operate with the Inland Revenue.

Due Diligence Information:

Christos Charalambous (58), date of birth 29 July 1951, an accountant of 56 Norfolk Avenue, Palmers Green, London N13, was born in Cyprus and moved to the UK in 1970. He was found guilty at Blackfriars Crown Court on 6 counts of Cheating the Revenue of GBP11m on 29 June 2010 and sentenced to eight years.