A CAR dealer who avoided paying £113,000 in tax has been sentenced.

Rashid Moughal, aged 45, of Gigg Lane Bury, was sentenced to 22 months jail suspended for two years on Friday, after admitting evading £113,000 by under declaring his income and not paying VAT on sales of second-hand vehicles at Manchester Crown Court on September 19.

The HM Revenue and Customs (HMRC) investigation into Moughal and his business centred on comparisons made between his Self Assessment returns, bank accounts and various auction house records.

They revealed that his sales had been understated and purchases suppressed to avoid having to register for VAT and to evade Income Tax.

Sandra Smith, assistant director of Fraud Investigation Service, HMRC, said: “This was a deliberate attempt to defraud the public purse by Moughal.

"He had been buying and selling cars since 2009 but he only registered as a sole trader with HMRC in July 2011. His subsequent tax returns proved to be a web of lies.

“We are determined to create a level playing field for all businesses. You cannot evade your tax obligations in this way – it is unfair and criminal.

"If you know of anyone who is committing tax fraud you can report them by calling our 24-hour Hotline on 0800 59 5000.”

Moughal now faces a confiscation hearing to recover the stolen taxes.