Fast food boss banned for accounting failure
24 Jan 2020
The director of a Walsall takeaway has been disqualified by the courts for seven years after the Insolvency Service found he had failed to maintain accounting records
24 Jan 2020
Zabargan Ahmad was the sole director of K2 Grill and Pizza Ltd, which traded as K2 Steak & Shake, a fast food takeaway in Walsall.
K2 Grill and Pizza was incorporated in April 2015 but right up to the point the company entered into liquidation in April 2017 and was dissolved in June 2018, Ahmad failed to maintain and preserve adequate accounting records, or keep records of tax liabilities.
Further investigations by the Insolvency Service found that HMRC had previously been in touch with Ahmad over failures to submit company accounts to determine what tax the takeaway owed.
The tax authorities also issued K2 Grill and Pizza with a fine of just under £69,000 for failing to notify them of its tax liabilities.
Ahmad’s failure to submit adequate accounting records to the tax authorities, the liquidator and the Insolvency Service has meant it has not been possible to confirm the company’s assets and liabilities, nor the director’s salary.
Dave Elliott, chief investigator for the Insolvency Service, said: ‘Zabargan Ahmad’s duty as a company director was to maintain and preserve his company’s financial records.
‘If he had done this he would have been able to provide information to the tax authorities and also the liquidator attempting to wind-up the company’s affairs. This should serve as a reminder to all directors to comply with their statutory duties.’