Pub landlord banned for £7m tax inaccuracies
21 May 2019
A pub landlord who operated several pubs and bars across Nottingham and Derby has been banned for 11 years, after causing his company to submit inaccurate documents to tax authorities, with some £7m of tax owing
21 May 2019
Edward & Moore Ltd was incorporated in September 2009 as a company with several public houses trading under its name, and Kirpal Rathaur was the appointed director.
In November 2018, the company entered into creditors voluntary liquidation, owing close to £6.9m to creditors.
A subsequent investigation by the Insolvency Service established that for more than four years between February 2010 and November 2014, Rathaur caused Edward & Moore to submit inaccurate returns to the tax authorities, generating an outstanding shortfall of close to £7m.
Further enquiries discovered that in March 2015, Rathaur falsely took Edward & Moore off of the business tax list. He then caused the company to continue trading until liquidation and because it had not been paying business tax for several years, the company built up liabilities of £7.9m.
In addition, over the life of the company, Rathaur failed to maintain and/or preserve adequate accounting records. This meant it was impossible to establish what happened to the £7.9m in unpaid taxes, how much in total was owed to the company’s creditors, including the tax authorities, as well as establishing how much money Rathaur withdrew from the company.
Martin Gitner, deputy head of investigations at the Insolvency Service said: ‘Directors cannot pick and choose what taxes they want to pay but this did not deter Kirpal Rathaur from avoiding paying business duty that he rightfully owed.
‘An 11-year disqualification is a substantial ban, seriously curtailing Kirpal Rathaur’s ability to run companies, and demonstrates our commitment to investigate and ban those directors who abuse the tax systems and their responsibilities.’