The essence of the fraud was extremely simple and was that the VAT was never paid to Customs and Excise

James Drummond-Young QC, prosecuting

He then sold them on in Britain, slightly below the market price, and charged his customers value added tax.

He was soon creaming off the VAT at �300,000 a week.

His plan was to close down the business and disappear with the money.

Jones did register his company, Lomond Services, for VAT - but he estimated his annual turnover at just �150,000 a year.

When that figure topped �20m customs officers started to investigate.

A smiling Robert Jones leaves the High Court

The High Court heard that Jones actually turned over more than �31m in three months.

"The essence of the fraud was extremely simple and was that the VAT was never paid to Customs and Excise," said advocate depute James Drummond-Young QC.

Lord Cowie was told that Jones, 44, was the front man for a shadowy syndicate of criminals.

But the judge told him: "You were the spearhead of this criminal scheme and, as has been accepted by you, you went into it with your eyes wide open."

Jones was the subject of a year-long probe by Customs and Excise investigators who followed a multi-million pound import trail from other European Union countries.

This was the biggest ever VAT prosecution in Scottish legal history and the first European Union fraud of its kind to be placed before the High Court

Alan Dryden

Scottish customs' chief investigator Alan Dryden said: "This was the biggest ever VAT prosecution in Scottish legal history and the first European Union fraud of its kind to be placed before the High Court."

He added: "The entire proceeds of this crime were VAT - money stolen from tax payers that could have been spent on hospitals and schools."

Jones, from Hyndland in Glasgow, had earlier admitted being concerned in taking steps to fraudulently evade VAT totalling �4,623,782.

The court heard that Jones - who was paying himself �1000 a week - was found to have documentation for setting up further companies when customs officers carried out raids.

Jones imported computer chips from Europe

The firm had a business address in Glasgow, but carried out most of its trading with firms in the south-east of England from a London base.

Mr Drummond-Young said that during an interview Jones alleged that a number of individuals helped him set up in London, but did not name them.

The Crown is bringing confiscation proceedings against Jones to seize the profits of his crime.

The court heard that stock and bank accounts totalling �416,000 would be handed over.

Taxi driver

Solicitor advocate Robert McCormack, defending, said first offender Jones had run a respectable textile and soft furnishings company in Glasgow which went bust in the early 1990s.

He was working as a taxi driver when he was approached by "a syndicate of businessmen who were involved in illegal trade".

They put up �100,000 for him to start Lomond Services and acted as the paymasters.

The detailed investigation had come up with no evidence of any "lavish enrichment" for Jones or his family, he added.