A labour supplier and former community leader, who failed to fully repay a £1.7m confiscation order imposed after he was convicted of tax fraud, has been sentenced to a further four years in jail.

Mazhar Hayat Raja had been due to be released early from a six-year jail term, but will now remain behind bars, as to date he has only repaid £680,000 after being forced to sell a variety of assets including houses, business premises, motorcars and personal effects.

Following an HM Revenue & Customs (HMRC) investigation, Raja was found guilty of pocketing tax and National Insurance he should have deducted from his employees wages and paid to HMRC.

Raja, who ran a series of companies supplying labour to a number of different sectors, netted at least £3m over a decade. He was jailed for six years in 2008 for the fraud and was also ordered to repay crime proceeds of £1.7m in 2009.

Robert Alder, assistant director for HMRC, says: “Tackling fraud is one of our top priorities. We have a duty to stop money being diverted and stolen from the nation in what are often large scale and ruthless attacks on the tax system.

“This case is a result of an in-depth investigation by dedicated officers, who work tirelessly and diligently, against those intent on stealing from the public purse. Working with our colleagues in the Crown Prosecution Service, we are committed to bringing the criminals responsible for this form of crime to justice and deny them from being able to retain and enjoy the proceeds of their crimes.”