Girl Guides Volunteers Imprisoned for Gift Aid Tax Fraud

Two sisters have been incarcerated after utilizing their roles as Girl Guides volunteers in a scheme that defrauded taxpayers of nearly £500,000. Sara Barnbrook submitted fraudulent Gift Aid claims to HM Revenue and Customs (HMRC) over a six-year period, based on fabricated donations, while her younger sister, Jean, laundered a significant portion of the funds through her bank account. The pair spent the money on “luxury items,” clothing, home improvements, and loan repayments, as revealed at Leeds Crown Court. A judge informed Sara, 54, and Jean, 51, that their actions were driven by “greed.” The court was told that the sisters, both residing on Templar Lane in Leeds, operated three Girl Guides groups in the east of the city, which became the conduit for the fraud. Between 2013 and 2019, Sara “exploited” the Gift Aid system, which permits charities to reclaim an additional 25% in tax on donations received, according to prosecutor Angus MacDonald. The elder sister filed false Gift Aid claims totaling over £482,000, using the names of acquaintances without their knowledge. Approximately £446,000 of this amount was paid out by HMRC to the Girl Guides accounts. It was stated that nearly a third of the total sum was withdrawn in cash directly from these accounts. The sisters “manipulated” unsuspecting volunteers associated with the Girl Guides groups by using their identities to authorize bank transfers, which diverted much of the remaining money into personal bank accounts. Mr MacDonald stated that the sisters collectively spent more than £90,000 on luxury items, nearly £50,000 on clothes, and almost £70,000 on loan repayments, while Jean Barnbrook allocated £40,000 to home improvements. The scheme was exposed in 2019 when Jean Barnbrook contacted her bank to inquire about a Gift Aid claim she believed was due to one of the groups. However, the court heard that this particular group had been closed 18 months earlier. As the investigation progressed, a “fictitious” letter from someone named “Louise,” seemingly confessing to the fraud, was composed on Sara’s computer. This was described as a “last desperate” attempt to divert attention away from them. Anastasis Tasou, mitigating for Sara Barnbrook, who had previously pleaded guilty to one charge of cheating the public purse, stated that her offenses arose from a desire to improve her “standard of living.” Glenn Parsons, mitigating for Jean Barnbrook, who admitted one charge of money laundering, argued that the younger sister was neither the “architect” nor the “driving force” behind the scheme and played a “subservient” role in the offending. However, Judge Mushtaq Khokhar declared that the younger sister had been an “equal participant” in the “sophisticated” scheme. He stated, “This was a fraud against the public purse and people such as you who commit these offences do so out of greed.” Sara Barnbrook received a three-year prison sentence, while Jean Barnbrook was sentenced to 30 months in prison. Following the sentencing, Tim Atkins from HMRC commented: “Tax fraud is not a victimless crime. “It has real consequences for the public services we all rely on.” Highlights from West Yorkshire are available on BBC Sounds, the latest episode of Look North can be viewed, and story suggestions are welcomed. This content is subject to Copyright 2024 BBC, with all rights reserved. The BBC states it is not responsible for the content of external sites and provides information on its approach to external linking.