Blackpool nightclub owner convicted for involvement in multi-million pound tax fraud
Paul Kelly owned a string of bars and pubs across the North West
A Blackpool nightclub owner and his accountant have been convicted for their involvement in a £4.9 million tax fraud.
HM Revenue and Customs say Paul Kelly, who owned a string of bars and pubs across the North West, evaded paying millions in tax with help from his accountant John Parry.
An investigation found Kelly had submitted fraudulent VAT returns and deducted tax and National Insurance payments from employees’ salaries but failed to pay it to HMRC.
Kelly, 63, used the proceeds of his crimes on luxury items, including a yacht, expensive Bentley and Rolls Royce cars, a £100,000 watch and a £2,000 Versace dining service set.
HMRC officers arrested Kelly at Gatwick Airport on his return from a trip to Barbados in November 2018. Parry was interviewed on the same day.
A search of Kelly’s home uncovered bundles of cash including £29,190, 6,283 US Dollars, 3,000 Euros and 800 Singapore Dollars.
The money was seized and forfeited in September 2019.
A further search of one of the business premises found digital files proving Kelly had not been declaring profits and had underdeclared VAT for several bars over a six-year period from March 2012.
Kelly and Parry were found guilty of cheating the public revenue and perverting the course of justice after an eight-week trial at Preston Crown Court.
They are due to be sentenced in July.
“Tax fraud is never a victimless crime"
Zoe Gascoyne, Deputy Director in HMRC’s Fraud Investigation Service, said:
“Paul Kelly abused his position of trust to steal from clients and staff members, and John Parry assisted him in further stealing from the taxpayer.
“Tax fraud is never a victimless crime and the eye watering sums he spent on cars and jewellery should have been funding the public services we all rely on.
“I hope this result serves as a warning to the minority of corrupt professionals who wrongly believe they can use their knowledge to assist clients committing fraud.
“We can and will work with our law enforcement partners to bring you to justice and we encourage anyone with information about any type of tax fraud to report it online.”