SNP in talks with HMRC over potential VAT fraud from Peter Murrell’s embezzled loot

Murrell, the former CEO of the SNP, admitted embezzling more than £400,00 from SNP donations and members fees - with many of his embezzled goods recorded with false invoices and wrongly accounted for.

SNP leader John Swinney has confirmed to MSPs that his party has began talks with HMRC over potential fraud if money was reclaimed from false invoices and receipts as business costs by Murrell’s actions.

The admission came after Scottish Labour leader, Anas Sarwar, speaking at First Minister’s Questions, warned there “are serious questions” to be answered.

READ MORE: Peter Murrell's potential assets revealed in court papers after £400,000 SNP embezzlement

Mr Sarwar said: “It has now become clear he did much of this by falsifying receipts, on many occasions pretending they were legitimate business costs.

“Political parties, like businesses, are able to claim back VAT on purchases relating to operating costs. That means fraudulent purchases recorded by the SNP using phony receipts, may have been included in any reclaimed VAT.”

The Scottish Labour leader added: “For example, the £124,000 camper van, recorded in the system as a van, would be subject to 20 per cent VAT.

“The £3,000 robotic lawnmower recorded as legal fees, would be subject to VAT. Or the ridiculous luxury egg poacher, recorded as an ethernet cable, would be subject to VAT.”

READ MORE: SNP to pursue Peter Murrell for money he embezzled from party

Mr Sarwar argued that those purchases could have potentially have been “illegally reclaimed from HMRC”.

He added: “Today, we have written to His Majesty’s Revenue and Customs, asking them to launch a full investigation into the potential defrauding.”

In response, Mr Swinney confirmed that he has already began discussions with HMRC over any potential defrauding of VAT>

He said: “The issues on the implications of Peter Murrell’s admission of guilt about the embezzlement of Scottish National Party funds does have potential implications in relation to the payment of taxation.

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“That’s why the Scottish National Party has already opened up discussions with His Majesty’s Revenue and Customs on exactly that point so that we proactively, in making sure we deliver the highest standards of financial governance - which is exactly what I preside over - is taken forward with our own request with His Majesty’s Revenue and Customs.”

Mr Sarwar highlighted Mr Swinney “accepting that there could potentially be illegal reclaiming of VAT from HMRC”.

He argued that the situation could indicate a “misuse of public money that should not have been claimed because of the fraudulent receipts issued by Peter Murrell”.

Mr Sarwar added: “But that also demonstrates that this is the biggest political and financial scandal in the history of the Scottish Parliament and it goes far beyond the crimes of Peter Murrell.”

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In a letter to John-Paul Marks, chief executive of HMRC and former permanent secretary of the Scottish Government, Scottish Labour deputy leader, Jackie Baillie, highlighted “the falsified invoices and receipts were for items that would be considered legitimate business use”, by Murrell, adding that “it is likely they have impacted on the VAT calculations and liabilities of the SNP.”

She added: “If we are to successfully restore public trust in our democracy and the ability of public institutions to hold political power to account, there must now be full transparency and a thorough audit of the wider ramifications.

“The people of Scotland will expect nothing less.”

HMRC said that it cannot comment on individuals due to taxpayer confidentiality law.

Scottish Conservative leader Russell Findlay, also brought up the Murrell scandal at FMQs, branding it a “crime spree”.

Mr Findlay claimed that Murrell “simply couldn’t have done this without the protection of his wife, Nicola Sturgeon, and his childhood friend, John Swinney”.

That provoked an angry response from the First Minister.

“Russell Findlay has spent years coming year, abusing me, denigrating my personal integrity and my personal reputation”, Mr Swinney said.