A company has been placed into liquidation after failing to disclose a significant amount of cash takings, an Insolvency Service Investigation has revealed.
Moynoor and Angura Rashid, the directors of Salma Cuisine Limited, have also been banned from acting as company directors for ten and a half years.
The investigation revealed “significant suppression of cash takings resulting in a VAT assessment of £85,794”. Its Corporation Tax liability was also reassessed to be £135,009.
The directors were further issued with various penalties totalling £52,897.
HM Revenue & Customs (HMRC) concluded that the firm went into liquidation owing more than £400,000.
David Brooks a Chief Investigator with the Insolvency Service said: “The periods of these disqualifications sends a clear message to other company directors that tax abuse of any kind will not be tolerated, especially when takings are channelled to directors.
“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 therefore will not hesitate to remove bosses from the business environment in order to protect the public.”
Liquidation – what is it?
Also known as winding up, a company put into liquidation can no longer trade or employ people. If it owes money, the liquidator will use the company’s assets to pay debtors in order of priority.
Directors normally place their company into voluntary liquidation because it can’t pay its debts and / or they want to close it.
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