A woman from Clydebank has avoided jail despite admitting to being part of a £171,000 tax fraud.

Carly McGinley pleaded guilty to being involved in serious organised crime on November 15, 2021, at Ayr Sheriff Court. She was one of four people convicted of roles in the VAT fraud scheme.

Gary Prentice, from Yoker, has also pleaded guilty to being involved in serious and organised crime and being concerned in an arrangement of criminal property on October 27, 2021.

A joint investigation by HM Revenue and Customs (HMRC) and the National Crime Agency (NCA) found that the fraud's "central" figure, James McGee, from Troon, was making bogus VAT repayment claims while using the hijacked identity of a dead man to cover up his fraud.

When arrested in 2013, McGee, a former HMRC VAT inspector, had two bank cards in the name of the deceased man.

One of the accounts had been opened after the man died and the other had been credited with some of the fraudulently obtained money.

Officers searching McGee’s home seized handwritten paper records from his house which contained detailed information on several VAT registered businesses.

Experts confirmed the handwritten records matched McGee’s entries in his old HMRC diaries and notebooks.

McGee, who left his VAT compliance role with HMRC in 2009, has today been sentenced to 30 months in jail after being found guilty following a trial at Ayr Sheriff Court.

Lynsey Thompson, operational lead, Fraud Investigation Service, HMRC, said: “McGee used his knowledge of the VAT system to coordinate a scheme to steal from the public purse – money that is essential to fund the services we need, such as hospitals and schools.

“This was a shameful way for a former employee of 34 years to act, but this conviction shows that nobody is above the law.

“I urge anyone with information about any type of tax fraud to report it on gov.uk.”

Rob Miles, NCA Scotland Operations Manager, said: “NCA investigators worked closely with our colleagues at HMRC to capture the evidence that was key to bringing McGee to justice.

“He used his experience and knowledge of the system to further his offending and probably thought this would help him evade detection.

“We’re working with law enforcement partners across Scotland to prevent organised criminality and we’re determined to tackle fraud in all its forms.”

McGee, who used to work from HMRC’s Ayr and Paisley offices, insisted the individual whose identity he used was the real controlling mind behind the criminal scheme.

In reality, McGee, with the help of others, was central to the fraud. The group fraudulently obtained money from HMRC, with the proceeds being laundered through accounts controlled by McGee and the others.

In total, £101,443.14 was paid out due to the false VAT repayment claims, while a further £70,351 was withheld by HMRC. 

McGinley was fined £1,120 for her role in the scheme with Prentice sentenced to a Community Payback Order which requires 300 hours of unpaid work to be completed within 24 months. He was also handed a Restriction of Liberty Order between 5pm and 5am for four months.