Two company directors were recently asked to pay 50% each of a huge tax bill which arose from missing trader fraud.
Stephen Bell and Paul Hovers were directors of Carwood Commodities Limited, a scrap dealer.
Once Carwood Commodities Limited entered liquidation, HMRC found the fraudulent transactions and issued a Personal Liability Notice (PLN) to each of them, arguing that they must have known about the fraud. HMRC had to demonstrate that there is no doubt the directors were complicit with the fraud.
The lesson here to directors and their staff, is to make sure due dilligence is carried out before entering into transactions with suppliers.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or to take advantage of our free consultation, please telephone Stella Flemmings on 01377 257788, 01724 230060 or 01904 520116 and she will make you an appointment with one of our insolvency professionals at our Driffield, Scunthorpe or York offices.