The latest HMRC deliberate defaulters list shows that £5.7m in penalties are outstanding for tax evasion and related non-payment for the latest quarter
Top of the list in the UK is Lucky Dairy Ltd of Essex with an outstanding tax bill of £2m, which resulted in a penalty of £1.3m. The company was put into liquidation in July 2020 with substantial debts to HMRC, including nearly £800,000 in corporation tax and a £1m unpaid VAT bill. At the time of liquidation, the insolvency practitioner identified £4.9m in debts.
A Belgium based import export business, Delta Trade SPRL, was also flagged for substantive tax evasion with a total outstanding tax bill of £2.7m, now facing a penalty bill of £1.6m. Another overseas operation picked up by HMRC was Maryland Web Builders LLC, a North Carolina based operation, which sold goods via an online marketplace through a company called I-Innovate, and racked up an unpaid tax bill of £1.08m. The company now faces a penalty of £397,571 for unpaid tax.
The quarterly list also features a number of restaurants which failed to comply with tax rules, including Slobrasil Limited, a north London venue which traded as Made in Brasil. In this case, nearly half a million pounds of tax was left unpaid over a five-year period up to 2018. The outstanding penalty for unpaid tax was calculated at an estimated £250,000.
Shoreham restaurant Into the Blue faced a tax bill of £51,000 but as the owner did not settle the outstanding amount, now faces a £25,000 penalty.
An accountant, George William Reid, also made the list, for a failure to pay all taxes due over a six-year period from 2012 to 2018. Total tax due amounted to £296,086, with a penalty of £159,146 now outstanding.
Highlighting the length of investigations, a web and system designer, Luke Rose, fell foul of the tax rules over a seven-year period from 2010 to 2017, for failing to pay tax on income from an offshore company. The outstanding tax bill amounted to £205,000 and HMRC levied a penalty of £207,625 for non-compliance.
Property and land developers Logwooden Investments Ltd failed to comply and pay tax liabilities of over £900,000 over a four-year period from 2012 to 2016, and now faces a penalty of £346,682.