Scott Coupland, from Crieff, who was the sole director of W D R Coupland (Produce) Ltd, submitted a string of false VAT returns to HMRC between March 2011 and November 2012.

By claiming his overheads were more than 20 times higher than they really were, Coupland received VAT repayments much greater than he was due. Investigators found Coupland was using the VAT repayments not only to keep his ailing business afloat, but also to cover the costs of private school fees and his mortgage.

When caught, Coupland said that his actions were driven by a downturn in business, and that he was trying to broker a business deal in Nigeria. He also claimed his computer had crashed and he had lost vital information which meant his VAT returns ended up being for the wrong amounts.

He was found guilty of the fraudulent evasion of VAT, contrary to the Value Added Tax Act 1994 S72, at Perth Sherriff Court.  The court heard he made two false VAT repayment claims between March 2011 and November 2012, one for £124,172 and one for £37,056, which aroused suspicion because of the large sums he claimed to have made in net value sales. Coupland was claiming to have sold more than £2m of potatoes in less than two months.

Cheryl Burr, assistant director, fraud investigation service, HMRC, said: ‘The VAT repayment system exists to support legitimate businesses, not as a bank to allow criminals access to ready cash. Coupland showed little regard to the honest taxpayers he was stealing from to fund his lifestyle and failing business.’