The owner of a construction company has been jailed for two years after stealing £300,000 in income tax and VAT.
Leonard Gjini, 33, from Purley, Greater London, set up Croydon-based Leo’s Construction Services Ltd in April 2010, but failed to pass on any tax deducted through PAYE from employees’ salaries or from contractors’ wages under the Construction Industry Scheme to HMRC.
He also pocketed the VAT charged to clients.
Gjini mainly used the money for mortgage payments and to fund household expenses although he claimed to use it to fund his gambling and drinking habits.
Alan Tully, Assistant Director, Fraud Investigation at HM Revenue and Customs, said Gjini ran a relatively successful business but had built up a huge debt by the time he admitted to the fraud.
“He has defrauded HMRC and abused the trust of his clients and his employees,” said Alan.
“Failing to pay taxes will not be tolerated and it’s unfair to other legitimate businesses who pay their taxes on time.”
A joint investigation with the Insolvency Service also found that Gjini had failed to keep proper records before Leo’s Construction Services Ltd was entered into a contrived liquidation in July 2012.
“We are determined to stamp out tax fraud and will not hesitate to work with partners like the Insolvency Service to take action against cheats,” added Alan.
“Our next step is to reclaim the profits Gjini made committing this crime.”
Gjini pleaded guilty to VAT evasion and cheating the public revenue at Croydon Crown Court on 26th January.
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