Restaurant director banned for concealing takings

04 January 2017 by
Restaurant director banned for concealing takings

A director has been disqualified from acting as a company director for eight years after failing to provide proper accounting records.

Mr MD Taj Uddin, 37, was the director of Spice of Sylhet Limited which traded as London Brick Lane Indian restaurant, Papadoms.

An investigation by the Insolvency Service found Uddin deliberately failed to ensure that Spice of Sylhet Ltd had accounted properly for VAT to HMRC.

Without proper records, investigators were unable to verify the true level of takings and reasons for payments of £265,418 including cash withdrawals of £27,827 from the company bank account between November 2013 to April 2015.

No wage records were produce, meaning it was not possible to establish the number of staff employed. Wages were also unknown and therefore the amounts of tax and National Insurance contributions due.

During the time of liquidation, the company owed almost £200,000 to HMRC.

However, in the statement of affairs, Uddin disclosed a debt to HMRC as £21,434.

An investigation by HMRC said that the takings had been deliberately concealed. HMRC assessed the level of concealment as £78,128 VAT and also imposed Civil Penalties of £73,113.

David Brooks chief investigator with the insolvency service said: "The period of this disqualification contained within the undertaking signed by Mr Uddin sends a clear message to other company directors that: If you fail to comply with statutory legislation because you do not maintain sufficient company accounting records to satisfactorily explain payments and transactions of the business or your company records conceal the true level of takings and sales this 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, Mr Uddin has ultimately deprived the public services and the public from receiving the services it deserves. The Insolvency Service therefore will not hesitate to remove them from the business environment in order to protect the public."

The disqualification prevents him from being a director of a company, directly or indirectly, or be involved in the management of a company in any way for eight years.

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