Anil Shah, an accountant from Middlesex, refused to assist HMRC officers who were investigating suspected tax evasion by his clients, despite being served with the legally binding documents.

At City of London Magistrates Court Shah pleaded guilty to failing to comply with a disclosure notice by making a false or misleading statement. He has now been sentenced at the Central Criminal Court to pay a £120 surcharge and a fine of £25,000 within 28 days or face 18 months in prison.

The court heard that Shah ignored disclosure notices, which require individuals to share paperwork and information with HMRC when part of a criminal investigation. When challenged by investigators, he made a number of statements that were found to be totally untrue. This included saying that he did not act for clients, when he did.

During sentencing, His Honour Judge Topolski QC told the defendant: ‘You said you only dealt with payroll and bluntly you lied.

‘As for culpability, what you did, did impede the proper efficient and fair investigation of serious crime. You had no choice to plead guilty and you knew it.’

Simon York, director, fraud investigation service, HMRC, said: ‘As a professional accountant Shah's role was to offer sound advice to his clients and comply with HMRC regulations. Instead he abused his privileged position, knowingly broke the law, and failed in his professional duties.

‘HMRC is determined to clamp down on financial crime. Today’s result sends a clear message to anyone who is considering trying to cover up tax fraud – nobody is beyond our reach.’

This is the first HMRC investigation that has led to prosecution for failure to comply with a disclosure notice.

Kristin Jones, head of the specialist fraud division at the Crown Prosecution Service, said: ‘Anil Shah was an accountant who abused his position as a professional adviser and hid his clients’ criminal actions from the public eye.

‘This case demonstrates the repercussions of a refusal to cooperate with the authorities.’