A Jaguar Land Rover employee was reduced to tears in court upon learning his fate in a tax fraud case that saw him illicitly claim nearly £32,000 in tax relief. Gary Henry, 58, became embroiled in a fraudulent scheme at the car manufacturer, submitting false expenses claims for six years and receiving unentitled tax relief from HM Revenue and Customs (HMRC). The father, who resides on Broadstone Road, Kitts Green, confessed to being lured into the scam by an ‘accountant’ colleague.
Henry pleaded guilty to one count of being knowingly involved in the fraudulent evasion of income tax. Emotions ran high in Birmingham Crown Court when Recorder Luke Blackburn announced on Friday, July 18, that Henry’s eight-month sentence would be suspended, remarking that he was ‘lucky’ to escape a prison term.
The court mandated Henry to complete 30 days of rehabilitation activities and 150 hours of community service. This incident follows a report last year by Birmingham Live about another JLR worker, Andrew Bell, who profited £70,000 from the so-called ‘Tommy’s Tax’ scheme but also avoided incarceration.
Jaguar Land Rover has acknowledged conducting an internal probe after discovering a ‘small number’ of its staff followed unsanctioned third-party tax advice. Prosecutor Millie Hainge highlighted: “The conduct in this matter arises as part of a series of investigations into Jaguar Land Rover over the suspected using of unregistered tax agents to claim back work expenses.”, reports Birmingham Live.
“Jaguar Land Rover confirmed most of their employees did not incur expenses but when they do they should be claimed in-house and not through this scheme.” An Income Tax Self Assessment account was established for Henry in September 2020. Tax returns were eventually filed for the years 2016 through to 2021. Henry gained £31,970.23 in total from the fraudulent activity.
He moved approximately £13,000 to a separate account ‘suggesting a third party was involved in assisting the claim on behalf of the defendant,’ Ms Hainge added. She went on: “The defendant was interviewed about the offence. He explained he previously knew a man who he knew as Femi Mwangi, who worked at Jaguar Land Rover in a different building.
“Mr Henry was made aware through a friend he was an accountant. He helped people to legitimately claim large sums of tax back from pay slips. He was informed Femy did not have upfront costs but retained 40 per cent commission. He believed multiple employees had undertaken the same service.” The prosecutor revealed Henry supplied the required personal information to Femy and subsequently received correspondence from HMRC but failed to comprehend it and was instructed to ‘ignore them’, by Femy.
Henry has been employed at JLR since 1991 and has kept his position as a quality control manager despite his participation in the tax fraud. Pierre de Garis, in defence, stated: “He understands what he did in 2020 was wrong, stupid and he made an incredibly silly mistake.” He informed the court that Henry genuinely regretted his actions and had already earmarked £30,000 from his pension to repay the money.
The barrister further revealed to the court that in 2020 his partner tragically passed away, stating: “He was stricken by grief, wasn’t thinking straight and his head wasn’t screwed on. With all that going on he made this mistake. He was vulnerable and wasn’t the man who appears before you today.” Recorder Blackburn, delivering the sentence, dismissed the notion that Henry’s involvement in the scam was ‘silly’, stating: “I find you knew perfectly well what you were doing.
“You knew you were acting fraudulently which is why you pleaded guilty to it. I am sure the reason you acted as you did was because other people at the place of work were doing the same. I don’t say that remotely to criticise the employer.
“Unknown to the employer others were doing this and they put you on it and told you about this scheme.” He added: “Frankly, a 10-year-old child would have known this was a dishonest scheme.” However, the judge confirmed that Henry could be rehabilitated and that the offence was not ‘so serious this has to be immediate custody’, causing the defendant to break down in tears.
He confirmed he would suspend the sentence for 21 months and said: “You have been lucky to avoid prison today. I can see you’re relieved. You must take this sentence very seriously.” The court will address the recovery of funds through Proceeds of Crime Act proceedings at a subsequent date.
A spokesperson for HMRC declared: “We are on the side of the law-abiding majority and we will take action against those who try to cheat the system.” They further implored the public, saying, “We urge anyone with information about any type of tax fraud to report it to HMRC online.”