The boss of an Aberdeen Italian restaurant has appeared in court after failing to pay more than £50,000 in taxes.
Unbeknownst to Masoud Mehri’s customers, the Italian food served up at the now-closed Piccolo on Bon Accord Terrace came with a side of tax fraud.
An investigation found that, between January 30 2012 and October 4 2015, the 43-year-old charged customers VAT but failed to pass it on to the taxman.
The Press and Journal previously reported on the case when a second man, filmmaker Hassan Nazer, also faced charges, but his not guilty pleas have now been accepted by prosecutors.
Mehri also had a not guilty plea to another charge accepted and the sum involved was amended before pleading guilty.
VAT not passed on to HMRC
Fiscal depute Lucy Simpson told Aberdeen Sheriff Court that a separate company had registered for VAT purposes with HMRC for the restaurant in 2007 before cancelling at the start of 2011.
Ms Simpson told the court: “On February 7 2012, a TSB Business Bank Account was opened by the accused for Pasargad Warehouse Ltd, Piccolo, 21-23 Bon Accord Terrace, Aberdeen.
“The accused was named as the director of the company.”
Weeks later, the company opened an account with a business providing the facility to accept card transactions, with the money to be passed to the TSB business account Mehri had opened.
Between March 7 2012 and July 10 2015, £414,564.99 was paid into the TSB account in this fashion, through customers in the restaurant making card payments.
These customers were charged VAT using the VAT registration number that had been cancelled at the start of 2011.
Almost £45,000 paid into Mehri’s personal account
Between August 1 2013 and April 30 2014, restaurant customers were charged £55,725.80.
These customers were also charged VAT using the cancelled registration number.
Ms Simpson said: “Following an investigation by HMRC, the accused was found to have evaded £52,254 in VAT.
“The accused made no VAT payments under that VAT registration number.
“A search of the HMRC computer system found no trace of Pasargad Warehouse Ltd trading as Piccolo Italiano having ever been registered for VAT at 21-23 Bon Accord Terrace, Aberdeen.
“Whilst being interviewed by HMRC officers, the accused stated that he knew the company had a lot of VAT liabilities and that there were ‘things owed’
“Between June 1 2012 and April 31 2015, the accused received £43,773 from the business bank account into his personal bank account.”
Mehri, of Elder Crescent, Derry, Northern Ireland, admitting being knowingly concerned in the fraudulent evasion of VAT.
Sheriff Gordon Fleetwood deferred sentence for background reports until October.
Defence agent Iain McGregor reserved mitigation until the sentencing hearing.
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