Jail ride for minicab directors over accounting failuresTwo company directors who ran a taxi hire company have received jail sentences and been disqualified for failing to keep adequate accounting records and failing to pay £150,000 in VAT owing to HMRC, following an Insolvency Service investigation
Two disqualified directors who were found to be in control of a series of retail businesses while still banned from running a company have received prison sentences and a further disqualification, following an investigation by the Insolvency Service and the Department for Business, Innovation and Skills (BIS) into the companies which collapsed owing over £10m
Arfan Khan and Gerard Burns, both from Middlesbrough were directors of Thornaby Cars Ltd trading as Royal Cars. The company was wound-up on 28 July 2010 following a petition by HMRC.
The investigation found Khan and Burns unlawfully transferred £150,0000 from the company before it was wound up to another company which they controlled, when they knew that such an amount was owed to HMRC for unpaid VAT. In doing so, they prevented HMRC from being paid the debt that it was owed.
Both Khan and Mr Burns failed to keep adequate accounting records to show the financial position of Thornaby Cars Ltd.
Khan further continued to use the business name Royal Cars previously used by Thornaby Cars, when its use had been prohibited for a period of five years from 28 July 2010.
At Newcastle-upon-Tyne Crown Court Khan was sentenced to 16 months’ imprisonment and disqualified from being a company director for a period of 10 years.
Burns was sentenced to 10 months’ imprisonment (to be suspended for two years) and disqualified from acting as a company director for a period of five years.
Simon Button, deputy chief investigative officer, from the Department for Business, Innovation and Skills (BIS) said: ‘The Insolvency Service and BIS will take firm action when we find that company directors have abused the trust that the public expect from them when they hold such a responsible position.
‘Both Mr Khan and Mr Burns were clearly aware that the money belonged to the company and its creditors, and was not theirs to do with as they wished.’
- See more at:
https://www.accountancylive.com/jail-ri ... sOIvJ.dpuf
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