Director banned after causing company to enter into liquidation

Blog Liquidation

A director of a company has been served a directorship ban after failing to file proper tax returns forcing the business into liquidation.

According to the report, published by the Insolvency Service, sole director Jilan Moore set up Beijing Dragon Catering Limited in 2007 to run three restaurants in Spilsby, Grimsby and Skegness.

However, the company entered into liquidation in 2016, triggering an investigation by the authorities.

It was found that the restaurants’ records did not match the returns they had officially submitted. Between February 2014 and April 2015, HM Revenue & Customs (HMRC) concluded that the business “deliberately suppressed sales and under-declared tax owed”.

This resulted in more than £100,000 in unpaid taxes. The liability could not be paid, leaving director Ms Moore no other option than to liquidate the company.

The sole director later admitted to submitting a total of five false tax returns which “deliberately under-declared tax owed on sales”.

For her failure to file and maintain proper records resulting in the company’s collapse, Ms Moore was handed a nine-year directorship ban, stopping her from becoming directly or indirectly involved in the management of a company.

Commenting on the case, Dave Elliott, Chief Examiner for the Insolvency Service, said: “This wasn’t a case of Jilan Moore simply forgetting to pay the correct tax, rather she deliberately and wilfully suppressed sales and under-declared her tax contributors to avoid paying what she rightfully owed.

“This disqualification will send a clear message to other company directors that tax abuse of any kind, particularly when it comes to suppression of takings, will not be tolerated.”