A pub chain has been placed into liquidation after its director caused the company to submit a number of inaccurate tax returns and generate millions of pounds of debt.

Full details of the investigation have been published online by the Insolvency Service, who also carried out the inquiry.

According to the report, Edward & Moore Limited, the holding company of several public houses in Nottingham and Derby, entered into Creditors Voluntary Liquidation (CVL) in November 2018, owing almost £7 million to creditors.

Investigators found that the company submitted inaccurate tax returns for more than four years, leaving the company with an outstanding tax bill of £6.9 million.

It was established that the director had caused the company to be removed off of the business tax list, but continued to trade until liquidation in direct contravention of insolvency rules.

The Insolvency Service concluded that the director had failed to maintain and/or preserve adequate accounting records, ultimately to the detriment of the company and to its creditors.

Investigators added that because of this, it was also unable to establish exactly what happened to the £7.9 million in unpaid taxes, as well as how much capital was taken out of the company.

The business was ultimately liquidated, while the director received an 11-year disqualification order, effectively banning him from directly or indirectly running or managing any other companies until 2030.

Commenting on the investigation, Martin Gitner, Deputy Head of Investigations, of the Insolvency Service said: “Directors cannot pick and choose what taxes they want to pay but this did not deter [the director] from avoiding paying business duty that he rightfully owed.

“An 11-year disqualification is a substantial ban, seriously curtailing [the director’s] ability to run companies, and demonstrates our commitment to investigate and ban those directors who abuse the tax systems and their responsibilities.”

 

Categories: BlogBusinessHMRCTax