Liquidation for fast food restaurant after investigation uncovers statutory failures
A business has been placed into liquidation after an investigation found that its directors caused or allowed the company to submit “inaccurate” VAT returns.
The directors were also banned for a combined period of 10 years, banning them from undertaking any form of management position in a limited company.
HM Revenue & Customs (HMRC), which carried out the investigation, found that the fast food restaurant had failed to record all of its cash takings and grossly under-declared tax as a result.
At assessment, the tax office was owed around £164,000 in relation to arrears of VAT, PAYE, National Insurance Contributions (NICs) and Corporation Tax.
Lawrence Zussman, Deputy Head of Investigations with the Insolvency Service said: “The periods of these disqualifications sends a clear message to other company directors that tax abuse of any kind, particularly when it comes to suppression of cash takings by directors will not be tolerated.
“Much of the public service is funded by the correct amount of taxes being paid. By not declaring and paying the correct amount of taxes, the public has been deprived from receiving the services it deserves from the public sector. The Insolvency Service will not hesitate to take action against directors so they cannot abuse limited liability provided by trading through a company.”