Commerce firm placed into compulsory liquidation following considerable tax debt

Blog Liquidation

A company has been placed into compulsory liquidation after its director allowed the company to “participate in transactions which were connected with the fraudulent evasion of VAT”.

Raptor Commerce was found to have made a wrongful claim of a VAT repayment totalling more than £1.2 million.

Under insolvency law, creditors can apply to wind-up a company through the process known as compulsory liquidation. The courts will have the final say on whether a company must be wound up or not.

The Insolvency Service, the Government department in charge of investigating the circumstances around a company’s insolvency, also banned the director for a period of 13 years.

During this time, the man will not be able to act as a director, take part, directly or indirectly, in the promotion, formation or management of a company, or be a receiver of a company’s property.

Tony Hannon, the Official Receiver in the Public Interest Unit South, part of the Insolvency Service said: “The Insolvency Service will take firm action when we find misconduct and wrongdoing in the operation of companies by directors.

“The Insolvency Service is committed to protecting the integrity and confidence in the market both by consumers and business people alike.”