An Indian-origin director of a ladies clothing manufacturing company in the east Midlands town of Leicester has been banned for six years after failing to pay a £98,000 tax bill, Britain’s insolvency officials said on Wednesday.
Surinder Singh, 62, was the director of the company that was placed into compulsory liquidation in July 2019 after ceasing trading and failing to pay the tax bill which had accumulated from April 2018.
The Official Receiver who investigated Singh’s conduct as director found that he had failed to ensure that the company kept accounting records. He had also withdrawn £180,000 between November 2017 and March 2019, but could not explain the reasons for the withdrawals.
The Insolvency Service said Singh did not dispute that he failed to ensure the company maintained and/or preserved adequate accounting records and that the company traded to the detriment of the tax authorities.
Robert Clarke, chief investigator at the service, said: “Surinder Singh tried to cloak his actions through a lack of records and attempted to gain an unfair competitive advantage by not paying the tax due”.
“Directors have a clear obligation to make sure they maintain full and accurate records for their business, and we will take robust action against those who fail to maintain these required standards, as this case shows”.