David Paterson of Scone collaborated with his accountant Kevin Sinclair of Kirkintilloch to reclaim VAT they weren’t due, an HM Revenue and Customs (HMRC) investigation revealed.

Mr Sinclair used his company, GD Accounting, to submit fraudulent VAT repayment claims for a company owned by Paterson; and another fictitious company set-up purely to facilitate the fraud. The claims were supported with false invoices created by the pair.

Both men were arrested on 12 November 2015 at their home addresses and charged with VAT fraud after interview later that day.

They pleaded guilty at Dundee Sheriff Court on 3 November 2020.

Mr Paterson was sentenced to two years and nine months in jail and Sinclair was jailed for one year and nine months before the same court today.

Cheryl Burr, assistant director, Fraud Investigation Service, HMRC, said: “VAT fraud is not a victimless crime as it steals taxpayers’ money that should be spent on our vital public services.”