Seven year director ban over failure to maintain records

The director of an Edinburgh-based consultancy has been banned for seven years after he failed to maintain adequate records and explain what happened to the company when it collapsed, owing over £200,000 in tax

Paul Gilhooley, from East Lothian, was the sole director of Paul Gilhooley Consultancy Ltd. The consultancy was incorporated in May 2014, with registered offices in Dublin Street, Edinburgh.

However, the consultancy entered into a difficult trading period and was advised to enter into a creditors voluntary liquidation (CVL) in June 2017, after which had ceased trading.

Despite numerous requests Gilhooley failed to deliver any accounting records to the insolvency practitioners.

As a result, they could not determine from June 2016 what the consultancy had been doing, the exact reasons for the insolvency or the level of payment taken by Gilhooley out of the company.

The administrators were also unable to verify a significant tax debt of just over £207,000 and could not establish the consultancy’s debts, what happened to £14,000 of cash taken from the company’s bank account or verify what happened to the consultancy’s fixed assets.

Robert Clarke, head of company investigation at the Insolvency Service said: ‘Directors have a legal duty to maintain proper accounting records and Paul Gilhooley has paid the price for failing to do that as he be banned for a significant amount of time cannot now carry on in business other than at his own risk.’

Report by Pat Sweet

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