A man has gone on trial at Aberdeen Sheriff Court, accused of a VAT scam worth more than £400,000.
Kevin McKay, 46, is accused of fraudulent evasion of VAT, totalling £419,799.34, between 2008 and 2014.
McKay is accused of submitting VAT returns with false details and failing to submit VAT returns declaring the details of VAT outputs for IPPS Limited between August 1, 2008, and July 14, 2014.
It is also alleged that between August 1, 2008, and February 28, 2013, he provided documents with false details to HMRC.
He is also accused of transferring £100,473.98, allegedly obtained by the fraudulent evasion of VAT into a Romanian bank account.
McKay, whose address was given in court papers as Stewart Terrace, Northfield, Aberdeen, denies the charges and has lodged a special defence of incrimination against his ex-wife.
The jury was read a joint minute of agreement by Fiscal Depute Anne MacDonald.
The court heard that IPPS Ltd operated as a business, providing security and cleaning services. The jury was told that from June, 2008 to November, 2011, Susan McKay was the sole director of the company.
Thereafter, it was Kevin McKay until the dissolution of the firm in March last year.
The joint minute also stated the firm failed to submit VAT returns between August, 2012 and May, 2014.
Susan McKay gave evidence during the first day of the trial.
She told the court she had separated from her husband in February, 2009 and they divorced in January, 2014.
When asked by Anne MacDonald what her involvement in IPPS Ltd had been, she replied: “The company was put in my name because Kevin made himself bankrupt as a result of another business. He wanted to start another business, but he could not.”
She added she had said from “day one” she would not be involved in the running of the firm, and, when she separated from McKay, asked for her name to be removed.
The trial continues.