Restaurant placed into liquidation following accounting fraud

Blog Liquidation

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A restaurant has been placed into liquidation after under-declaring cash sales and VAT.

Ricky Yan Kay Sum, the sole director of the Chinese takeaway restaurant in Rainhill, was also disqualified for five years.

The disqualification prevents Mr Sum from becoming directly or indirectly involved in the promotion, formation, or management of a company until at least 2022.

The takeaway was placed into liquidation in 2015 owing more than £50,000 to its creditors, the Insolvency Service said.

Its investigation found that Mr Sum had under-declared the takeaway’s sales and VAT to HM Revenue & Custom (HMRC) and failed to pay HMRC the VAT which was properly due and payable.

Commenting on the disqualification, Robert Clarke, Chief Investigator at the Insolvency Service, said: “Under-declaration of sales deprives the exchequer of vital funds for public services. In co-operation with HMRC, the Insolvency Service will not hesitate to investigate such misconduct with disqualification as a director the probable consequence.”

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