Builder banned for false tax returns
13 Aug 2020
A construction boss who owed more than £426,000 in tax and penalties to HMRC has been banned from running companies for nine years, after he caused his company to submit false tax returns
13 Aug 2020
Hardip Khaira was a director of HK Construction, which was incorporated in May 2011 and provided groundwork construction services, including drainage and concreting.
The company traded from premises in Coatbridge until July 2019, but went into creditors voluntary liquidation in September 2019.
A subsequent investigation by the Insolvency Service found that between November 2011 and February 2015, Khaira knowingly caused the company to submit false tax returns. Some invoices had been brought down to zero rated sales to reduce the company’s tax liability.
The tax authorities determined that HK Construction owed just over £225,000, which increased to more than £426,000 when interest and penalties were applied for the deliberate concealment and failure to pay.
Robert Clarke, chief investigator for the Insolvency Service, said: ‘It was clear from our investigations that Hardip Khaira deliberately caused the construction firm to submit false returns to reduce the amount of tax the company had to pay.
‘This is serious misconduct and a nine-year ban not only demonstrates the severity of what Hardip Khaira has done but also confirms that we will take action to remove the privilege of limited liability against those who think they can do the same.’