Jeweller given director’s ban over tax filing failures
24 Aug 2020
A jeweller from north-west London has been given an 11-year ban after breaching a court order that allowed him to act as a director following an earlier disqualification, as well as abusing the tax regime
24 Aug 2020
Daniel Brodie was a director of Jewelmark UK Ltd, which was incorporated in June 2010 and traded as a watches and jewellery wholesaler.
He was first appointed a director of the company in June 2010 and resigned in July 2013, before being reappointed in September 2014.
In June 2017 the company entered into creditors voluntary liquidation, with outstanding tax liabilities of more than £210,000.
An investigation by the Insolvency Service found Brodie had failed to ensure Jewelmark UK complied with its statutory tax obligations, and that he had also breached a 2012 court order, which granted him permission to act as a company director in lieu of a previous disqualification.
This earlier court order related to January 2012, when Brodie was banned for four years after he failed to ensure a separate company he was a director of – Avya Gems Ltd – complied with its statutory tax and filing obligations.
Although Avya Gems had not paid the correct amount of tax, Brodie benefited from dividends and operated a director’s loan account, which was overdrawn.
Following his January 2012 ban, Brodie subsequently applied to the court for leave to continue to act as a director of Jewelmark UK and two other companies under section 17 of the Company Directors Disqualification Act 1986.
His application was granted, and he was given leave to act as a director of Jewelmark UK Ltd, provided he adhered to the 21 conditions set out in the order.
However, the Insolvency Service investigation into the subsequent company failure found that Brodie had breached restrictions that he could not receive payments that exceeded £8,000 gross per month from the companies.
He had also failed to publish in Jewelmark UK’s accounts copies of the 2012 court order and the four-year disqualification undertaking.
In addition, Brodie failed to ensure that Jewelmark UK complied with its statutory tax obligations, when he received more than £540,000 in director’s loan payments between September 2015 and June 2017.
Lawrence Zussman, deputy head of insolvent investigations for the Insolvency Service, said: ‘The courts granted Daniel Brodie the ability to act as a company director despite a four-year ban.
‘The jeweller, however, showed total disregard and blatantly breached the court’s conditions by committing similar instances of misconduct that led to his first ban.
‘Daniel Brodie thought he could continue with impunity but thanks to our investigations, the jeweller has been removed from the business environment for a substantial amount of time.’