39 Essex Street silk convicted of £600,000 tax fraud
39 Essex Street Chambers Rohan Pershad QC was today (11 February) found guilty of tax fraud worth more than £600,000 at Blackfriars Crown Court. Investigators at HM Revenue and Customs (HMRC) found that Pershad failed to declare or pay £627,839 of VAT over a period of 12 years, instead spending the cash on luxury homes and private school fees for his children.
February 11, 2013 at 12:15 PM
3 minute read
39 Essex Street Chambers Rohan Pershad QC was today (11 February) found guilty of tax fraud worth more than £600,000 at Blackfriars Crown Court.
Investigators at HM Revenue and Customs (HMRC) found that Pershad failed to declare or pay £627,839 of VAT over a period of 12 years, instead spending the cash on luxury homes and private school fees for his children.
Pershad was deregistered for VAT by HMRC in February 2000 following a history of failure to submit tax returns or informing HMRC of a change of address. This stopped him legally trading above the VAT threshold, though between 2001 and 2008, he continued to use his invalid VAT number on invoices.
HMRC said this meant he was effectively "collecting the VAT on his fees but pocketing the money for himself rather than paying it to the public purse", with Pershad paying no VAT between June 1999 and September 2011.
Donald Toon, director of criminal investigation at HMRC, said: "Pershad's 12-year history of tax evasion was blatant theft from the public purse. He thought he was above the law, but someone in his profession should have known better than to try to cheat the system, as HMRC will not stand by while criminals try to cheat the taxpayer.
"Declaring and paying VAT that is due is a legal requirement – not a lifestyle choice – so we are pleased that justice has been served. We would like to thank the chambers involved for their assistance in this case."
HMRC said confiscation proceedings are underway.
Pershad was called to the Bar in 1991 and awarded silk in 2011. His practice focuses on clinical negligence cases. When he was first charged in July, Pershad said the Crown Prosecution Service (CPS) had issued the summons while he was still providing HMRC and the CPS with further information and representations.
He said at the time: "I am extremely disappointed that the CPS has seen fit to issue a press release whilst discussions are on-going. For the avoidance of doubt, I deny any dishonest activity in relation to my tax affairs and if a decision is made to pursue this matter in court, I will defend myself vigorously."
Last September, HMRC launched a taskforce to target tax evasion by five professions targeted as high-risk for tax abuse, including London lawyers. The body hoped to recover almost £20m through the task force.
In a statement, 39 Essex Street said: "Clearly this is a difficult time for Rohan, as well as his family. However, it is and always has been clear that all members of these Chambers, in common with all other self-employed barristers, are personally responsible to account to, and pay, HMRC for VAT received, and for income tax, and it is right that tax evasion should be appropriately punished when proved.
"On notice of his prosecution, Rohan agreed to the voluntary suspension of his membership of Chambers pending the outcome of the trial, and given the circumstances he will no longer be a member."
Andrew Marshall of 18 Red Lion Court led for the prosecution, while 9-12 Bell Yard Chambers head Mukul Chawla QC defended Pershad, with additional advice coming from Kingsley Napley partner Angus McBride.
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