Director of Aberdeen security company IPPS Ltd sentenced to four years in prison

The director of an Aberdeen-based security company, who was convicted of stealing more than £419,000 VAT and removing criminal property from Scotland after he was investigated by Her Majesty’s Revenue and Customs (HMRC), has been sentenced to four years in prison.

Kevin McKay, 46, from Stewart Terrace, was the sole director of IPPS Ltd and provided close personal protection services to the rich and famous, door supervisors for pubs and clubs and security officers for building sites, primarily in the North East of Scotland.

McKay charged his clients VAT, but lied on his HMRC tax returns, claiming his business was making less than 10% of its actual sales. Consequently, he pocketed £419,799.

In 2010, McKay also transferred over £100,000 of his criminal profits from his personal savings account to a bank account in Romania. This account belonged to the mother of a woman with whom McKay was in a relationship.

HMRC officers detained McKay in May 2013 and searched his home, car and business premises. Business and financial records were uplifted from these locations, as well as from his clients and bank.

McKay was sentenced to four years in prison when he appeared at Aberdeen Sheriff Court on Friday 10 March.

Solicitor jailed for £60,000 tax fraud

A criminal defence solicitor, who lied about his income to HMRC in order to steal more than £60,000 in a tax fraud, has been jailed for 18 months.

Azhar Islam Khan, 45, of Pinner, Greater London, failed to declare the shareholder dividend income from his business and the rental income he received from two properties in Blackburn and Preston on his tax returns.

HMRC’s investigation revealed that Khan withdrew money from his law firm, but lied in his accounts, recording the transactions as ‘professional fees’.

Investigators also discovered that he paid for a new kitchen and bathroom for his home from the company bank account, recorded as business expenses.

Khan, who chose not to give any evidence at his four-week trial, was found guilty of Income Tax evasion and cheating the public revenue on 31 January 2017. He was jailed for 18 months at Harrow Crown Court on 24 February 2017 and suspended from holding company directorships for four years.

HMRC has started the process to recover his criminal proceeds.

About the Author

Brian Sims BA (Hons) Hon FSyI, Editor, Risk UK (Pro-Activ Publications)

Beginning his career in professional journalism at The Builder Group in March 1992, Brian was appointed Editor of Security Management Today in November 2000 having spent eight years in engineering journalism across two titles: Building Services Journal and Light & Lighting.

In 2005, Brian received the BSIA Chairman’s Award for Promoting The Security Industry and, a year later, the Skills for Security Special Award for an Outstanding Contribution to the Security Business Sector.

In 2008, Brian was The Security Institute’s nomination for the Association of Security Consultants’ highly prestigious Imbert Prize and, in 2013, was a nominated finalist for the Institute’s George van Schalkwyk Award.

An Honorary Fellow of The Security Institute, Brian serves as a Judge for the BSIA’s Security Personnel of the Year Awards and the Securitas Good Customer Award.

Between 2008 and 2014, Brian pioneered the use of digital media across the security sector, including webinars and Audio Shows. Brian’s actively involved in 50-plus security groups on LinkedIn and hosts the popular Risk UK Twitter site.

Brian is a frequent speaker on the conference circuit. He has organised and chaired conference programmes for both IFSEC International and ASIS International and has been published in the national media.

Brian was appointed Editor of Risk UK at Pro-Activ Publications in July 2014.

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