Liquidation for company which understated profits

Blog Liquidation

A company has been placed into liquidation after it was found to have “deliberately” understated profits of more than £650,000.

The restaurant, Golden Earl limited, was wound up in December 2015 following an Insolvency Service investigation.

The company director was also handed a 10 year disqualification order, banning him from taking on any significant roles within a limited company.

The investigation found that approximately £653,436 was concealed, in which £135,528 was owed in corporation tax. The company was also fined some £192,957.

Further to the analysis, the company director received loans and advances from the restaurant totalling more than £600,000 on which tax was not paid.

Overall, £501,257 was owed to HM Revenue & Customs (HMRC).

Robert Clarke, Head of Company Investigation at the Insolvency Service said: “The public can be assured that where there have been abuses of public finance provisions which result in losses of this type, the Insolvency Service will investigate the conduct of the parties involved and take action to remove the privilege of limited liability trading for a lengthy period.”