A SHOPKEEPER who failed to declare her true takings for almost four years narrowly escaped an immediate prison sentence.

Ravinder Rai under-declared figures from the time she took over at The Village Store, in Langley Park, near Durham, in March 2008.

Durham Crown Court heard that it amounted to a £54,000 under-declaration by November 2011.

When HM Revenue and Customs (HMRC) officers visited the Quebec Street premises, in January last year, they found a set of figures, said to portray the true sales, in one note book.

But lower figures, those used by Rai when making her quarterly VAT declarations, were written in another book.

The notebooks were seized, as was a total of £16,450 found in a safe and in Rai's handbag, by the HMRC investigators.

Alun Jones, prosecuting for HMRC, told the jury at Rai’s recent trial: “In essence, we say the book containing the lower figures were those largely used when she declared her VAT.

“But, we say the higher figures in the other book reflect the true takings from sales over the counter.”

He said the disparity was often reflected in a £200 deduction from the actual takings.

The court heard that no takings were recorded for Christmas Day and New Year's Day one year, purporting that the shop was closed, when it was actually open for business.

Rai told the jury at her trial that she forgot to state that the shop was open and meant to alter the record.

She also said she had to make deductions from the recorded figure for costs and for money to pay suppliers.

But, following a four-day hearing, she was found guilty of being knowingly concerned in the fraudulent evasion of VAT.

She was cleared of a second count, of being knowingly concerned or taking steps to evade tax, between December, 2011, and January, last year.

Rai, 30, of Quebec Street, denied both charges.

Robert Adams, mitigating, told today’s (Friday November 29) sentencing hearing there was little he could say on her behalf as she is still in denial over her actions.

But the court heard she is the mother of two young children with another expected in coming months.

Recorder Stuart Brown told her that being a young mother did not make her exempt from serving a prison sentence.

But he added that, on balance, he was “just” able to suspend the sentence.

He imposed a 12-month prison term, suspended for two years, during which Rai will be subject to probation supervision.

HMRC is seeking a magistrates’ court order to retain the seized £16,450, while it is, “taking a civil route”, over the remainder of the outstanding figure owed by Rai.