Have a question?
033 3772 0409

Legal News

Directorship disqualification for false accounting and false VAT returns (6 October 2015)

Date: 06/10/2015
Duncan Lewis, Legal News Solicitors, Directorship disqualification for false accounting and false VAT returns

The director of a central London restaurant has been disqualified from acting as a director for ten years, after submitting false VAT returns, failing to keep records and filing incorrect accounts.

Gurvinder Luthra – of Bath Road in Hounslow, Middlesex – was a director of Pinnacles (UK) Limited, which began trading as a restaurant in Covent Garden in 2006.

In 2010, the company opened a second restaurant in London. Sales were lower than anticipated and the company struggled to pay high overheads.

In November 2013, the company ceased to trade – and on 18 February 2014, it entered into liquidation.

During an investigation into the Company’s records by the Insolvency Service in 2012, HMRC discovered the company had deliberately under-declared the amount of VAT due on returns between September 2010 and May 2012.

Pinnacles had failed to file any further returns – and did not make any payments to HMRC.

From 1 September 2010 up until liquidation, Pinnacles received at least £334,456 – including VAT refunds totalling £97,687 – and expended £334,461, from which no payments were made to HMRC.

Mr Luthra filed dormant accounts from 2007, which he knew were inaccurate as the company had started trading in November 2006. He also failed to ensure that Pinnacles maintained adequate accounting records – and failed to deliver them up to the liquidator, despite requests that he should do so.

Investigators were also not able to establish the recipients of and reasons for payments totalling £23,900 from the company’s bank account – and the reasons for payments made to a former company director totalling £28,183.

At the date of liquidation, HMRC was owed at least £155,980.

Commenting on the disqualification, Chief Investigator at the Insolvency Service, Cheryl Lambert, said:

“Directors who submit false information to HMRC and don’t pay their tax bills can expect to be investigated by the Insolvency Service – and enforcement action taken to remove them from the market place.

“Mr Luthra caused HMRC to lose nearly £156,000 by filing false returns and not making payments.

“He also filed false accounts and did not maintain records.

“Taking action against Mr Luthra is a warning to directors that they need to consider and take seriously their duties and obligations.”

Duncan Lewis Business Crime Solicitors

Duncan Lewis business crime solicitors can advise at any stage of an offence involving business crimes, such as false accounting, VAT fraud, tax evasion, company fraud, financial fraud, embezzlement and white collar crime.

There are Duncan Lewis offices nationwide – and a Duncan Lewis business crime solicitor can advise at the start of an investigation, before charges are brought, after or during a dawn raid – or during interview under caution with investigating authorities such as the SFO, FCA, HMRC, BIS or City of London Police.

For expert legal advice on business offences, call Duncan Lewis business crime solicitors on 020 7923 4020.

For 24/7 help at a police station, call the Duncan Lewis Emergency Hotline on 020 7275 2036.

Call us now on 033 3772 0409 or click here to send online enquiry.
Duncan Lewis is the trading name of Duncan Lewis (Solicitors) Limited. Registered Office is Spencer House, 29 Grove Hill Road, Harrow, HA1 3BN. Company Reg. No. 3718422. VAT Reg. No. 718729013. A list of the company's Directors is displayed at the registered offices address. Authorised and Regulated by the Solicitors Regulation Authority . Offices all across London and in major cities in the UK. ©Duncan Lewis >>Legal Disclaimer, Copyright & Privacy Policy. Duncan Lewis do not accept service by email.