Tax dodger ordered to give up homes, cars and bank balances worth hundreds of thousands - or face more jail time

A Kirklees businessman jailed for cheating the revenue of VAT has been ordered to repay £298,000 from his assets.

Ian John Coleman, 53, of Knowler Way, Liversedge, was sentenced to 32 months in prison in August last year after admitting 12 charges of evading VAT.

Leeds Crown Court heard then from Simon Clegg prosecuting that Coleman failed to declare the true income of his Top Gear vehicle repair company in Cleckheaton and underpaid the tax over an 11 year period.

Mr Clegg said Coleman, the sole proprietor of the firm on the West End industrial estate, had to pay some extra money in 2002 because of an inaccurate return but failed to heed that warning.

Over the following years he submitted returns which were fraudulent in three different ways. He failed to declare money from scrap sales, failed to correct central assessments which he knew were too low and under-declared the income of the business.

Jailing Coleman last year, Recorder Richard Woolfall said the offences had involved sustained and deliberate fraud and the extra cash had no doubt helped his business.

Ian Coleman's assets were identified by HMRC and have been seized in reparation.

The judge said: “This is clearly not a victimless crime. Everyone suffers, especially in these difficult financial times, hospitals, schools and similar establishments suffer if the pot is diminished.”

Mark Rhind, representing Coleman at that sentencing, said he fully intended to repay the debt.

He said Coleman was a hard worker who had initially at the start had some cash flow problems and he had not intended it to lead to such offending of which he was deeply ashamed.

He employed nine people and it was hoped that one of his staff would be able to keep the business going.

Coleman was back before Leeds Crown Court today (Thurs) for a Proceeds of Crime application. Judge James Spencer QC heard his total benefit from criminal conduct was now agreed at £345,865 with assets available of £298,316.

The judge made confiscation order in the amount available including Coleman’s half share in properties in Bridlington, Cleckheaton and Liversedge. He was given three months to pay with four years in prison in default.

After the case last year Martin McDonnell for HMRC said: “Coleman thought that he’d found a way to exploit the tax system. He was wrong and now he’s paying the price with a jail sentence. This is money that should have been funding vital public services and Coleman created an uneven playing field for his honest competitors.”