The owner of a local employment agency and one-time House of Keys candidate this week admitted a £190,000 VAT fraud.
Richard Ian Kissack is a 51% shareholder of Ambitions Ltd and a company director.
This week, the 52-year-old pleaded guilty to eight counts of VAT fraud and one count of VAT evasion.
High Bailiff Jayne Hughes declined jurisdiction and committed Kissack to the Court of General Gaol Delivery for sentencing.
Prosecuting advocate Rachael Braidwood told the court that qualified accountant Kissack committed the offences between July 2011 and April 2019.
Ms Braidwood said that the offences involved 27 separate VAT returns but only nine specimen charges had been laid.
The total amount of VAT which has not been paid is £190,536.
Ambitions Ltd, in Finch Road, Douglas, was set up in 2005 and is described as an employment placing agency, with Kissack said to be a 51% shareholder and a company director.
Ms Braidwood said that a VAT inspection was due at the company on August 15, 2019.
However, the day before, on August 14, Kissack hand-delivered a letter to the Customs and Excise office.
The letter was signed by him and included an attachment disclosing VAT errors between 2011 and 2019 for 27 separate periods.
On September 5, 2019 he was arrested and his home and business addresses were searched.
Spreadsheets found reflected the details which had been disclosed in Kissack’s letter.
A print out was found which showed some adjustments being made manually so that VAT showed as zero.
Also found was a copy of a story about an accountant in Northamptonshire who was jailed for a £111,000 VAT fraud.
Kissack, who lives in Falcon Cliff Court, Douglas, stood for election in Douglas East in 2011.
He was interviewed twice by police and each time provided ’no comment’ responses to questions and would not provide an explanation for the offences.
Ms Braidwood submitted that the case was too serious for summary court and should be committed to the Court of General Gaol Delivery for sentencing.
Defence advocate Darren Taubitz agreed and asked for 14 days to submit any basis of plea.
Mr Taubitz asked for a probation report to be prepared before sentencing and said: ’It is a case of someone sticking their head in the sand.’
The advocate said that he may ask for a deferment regarding the sentencing date as he said Kissack may be able to pay some of the VAT before he is sentenced if he was given more time.
Mr Taubitz said that if this was the case it would then go in his favour when he is sentenced.
High Bailiff Mrs Hughes committed the case to the higher court where Kissack is due to be sentenced on December 18, pending any deferment.
Bail was granted in the sum of £500 with a condition to contact probation, live at his home address, and not leave the island without court permission.