Directors accused of tests fraud 'declared small part of payments'

THREE directors at the centre of an alleged nationwide "cash for citizenship" scheme banked nearly £390,000 in payments from their company but only declared a tiny proportion to the taxman, a court has heard.

Liban Mohammed Yousif, one of the directors of City Wide Learning, banked payments of 172,304 from his company between October 2005 and March 2007 but according to his tax record was only paid 8,400 in the 2005/06 tax year and 21,394 the year after.

His PAYE tax amounted to 3,860 over the two years and there was no self assessment return to cover the outstanding income.

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Yousif is one of six men accused of conspiring to defraud the UK Border Agency between October 2005 and February 2007 by dishonestly arranging with Mohamad Jafari, another man called Shpetim Yemeri and unknown others for immigrants to receive false Life In The UK pass

certificates. Also charged are two other directors, Mustafa Yassin and Abid Rashid Yusuf, the centre's administrator, Mubarak Yusuf, and alleged middle men Mehmet Ince and Halil Dari, who arranged for false certificates to be acquired from City Wide.

All six deny the charge. Jafari pleaded guilty at an earlier hearing.

The prosecution has previously detailed tens of thousands of pounds in "unaccounted for" cash payments made into the directors' bank accounts.

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Sheffield Crown Court has also heard a series of witnesses say they paid Ince hundreds of pounds each to obtain false City Wide pass certificates for the Life In The UK test, which is a prerequisite when applying for citizenship.

The test only cost 34 to take legitimately but the witnesses, many from London, said they never went to Sheffield.

The defence has yet to begin its case but counsel for the directors have indicated explanations for the cash payments will be put to the jury, including payments received from other business interests.

Yesterday, Adrian Strong, prosecuting, drew attention to the tax

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records of the directors. Abdi Rashid Yusuf banked payments of 160,598 from City Wide between October 2005 and March 2007 but declared taxable income of 11,466 according to HM Revenue and Customs' records. As a result, he only paid 1,155 in PAYE tax.

Mustafa Yassin banked payments of 56,708 from City Wide over the same period but was only paid 9,641 according to his tax returns. He paid 2,121 on his recorded income from the company.

Mr Strong also highlighted the tax returns of Ince whose recorded taxable income dropped significantly after the police investigation into City Wide began in 2007.

"For the year after the execution of warrants at City Wide Learning, he actually turned in a loss of 19,000."

The trial continues.