Takeaway boss hid tax liabilities for five years
9 Jul 2020
The boss of a Paisley takeaway has been given a nine-year directorship disqualification after concealing the company’s tax liabilities for five years, owing HMRC over £100,000
9 Jul 2020
Raja Tandoori Ltd was incorporated in January 2010, with Kulwant Lally registered as the company director.
From February 2013, the company traded as a takeaway from premises in Paisley. But in July 2018, Raja Tandoori was petitioned to be wound-up and a few months later in September 2018, liquidators were appointed to formally wind-up the company.
The compulsory liquidation brought Raja Tandoori to the attention of the Insolvency Service, which conducted investigations into Kulwant Lally’s conduct.
This uncovered that he claimed to have incorporated the company to protect the trading name. However, investigators found that Raja Tandoori had been used as a vehicle for trading but failed to register with the tax authorities.
This meant that for five years between February 2013 and February 2018, Raja Tandoori failed to pay any tax, resulting in the tax authorities claiming back-dated tax payments and a fine amounting to £134,000.
Raja Tandoori’s failure to pay its tax liabilities let the tax authorities to petition the courts to wind-up the company.
Rob Clarke, Insolvency Service chief investigator, said: ‘Company directors have a legal responsibility to ensure their companies pay the correct amount of tax but Kulwant Lally clearly failed to do this for as long as the takeaway was trading.
‘Nine years is a substantial ban, removing Kulwant Lally from the corporate arena, and should serve as a start warning to those directors who think can renege themselves of their duties.’
By Pat Sweet