A Glasgow mobile phone boss who submitted false tax returns and fake accounts, resulting in non payment of over £500,000 in tax, has been banned for ten years following an Insolvency Service investigation
Songnan Sun was a director of Fersun Ltd, which was incorporated in March 2011. Initially the company specialised in repairs of mobile phones but then expanded into the wholesaling of mobile phone accessories and parts, sourcing stock from China.
The company operated in a competitive environment and as Fersun entered into difficult trading conditions in 2013/2014, the company cut its margins but this led to it experiencing cash-flow difficulties.
Following a tax investigation and Sun seeking advice from an independent insolvency practitioner, the company ceased trading in December 2017, before being placed in compulsory liquidation in February 2018.
The independently appointed liquidator reported to the Insolvency Service that Sun had caused the company to fail to deal with its tax affairs.
Further enquiries made by the Insolvency Service found that over three consecutive financial years between March 2014 and March 2016, Sun had caused Fersun to prepare and submit false annual accounts, having excluded the true level of sales.
Sun also caused Fersun to submit false tax returns over four consecutive years between June 2013 and March 2017. By under-declaring the true level of tax owed, this resulted in a loss of revenue to the Exchequer of at least £531,869 and Sun also secured somewhere between £50,000 and £60,000 for himself.
Robert Clarke, chief investigator of company investigation north at the Insolvency Service said: ‘Directors have a firm duty to ensure they properly deal with tax matters and pay what is due and Songnan Sun has paid the price for failing to do that as now he cannot now carry on in business other than at his own risk’.
Report by Pat Sweet