The directors of Harrison Property Partners Ltd, an East London property lettings and management company have been banned for a total of 13.5 years for failing to maintain company records and abusing the tax authorities.
Harrison Property Partners Ltd went into liquidation in February 2018.
Alan Clark, director, was banned in August 2020 for 3.5 years after it was revealed that during his time as director from September 2013 to his resignation in July 2016, he failed to submit tax returns, as well as trading to the disadvantage of the tax authorities. After Clark’s resignation, tax returns were submitted revealing near to £191,000 in tax liabilities, subsequent to his misconduct.
Andrew Geoffrey Matin, director, was disqualified for 6 years, following the investigation determining that Matin failed to keep sufficient accounting or records and/or failed to provide these at the request of the liquidator. Matin’s misconduct meant that it was impossible to verify various transactions of the company, including the remuneration of Matin himself. It was also impossible to verify if £770,000 was spent on legitimate business expenditure and the nature of 50 payment totaling £187,600 made to 3 separate accounts. Matin further failed to submit tax returns to the authorities and since the company went into liquidation, over £309,000 is owed in tax liabilities.
Khushal Khagram, director, has been disqualified to act as a director for 4 years for committing misconduct similar to both Clark and Matin, failing to ensure tax return submission, trading at the detriment of the authorities. Tax liabilities increased during Khagram’s time as director, as with the case of Matin’s.
These cases highlight the importance of keeping company records if a company enters into a formal insolvency. The Insolvency Service will also look to prosecute those directors who have treated HMRC worse than the other creditors as these directors are seen as easy targets.
Directors should also be aware that for multiple failures, HMRC have the ability to now make directors personally liable for the debts of the company in liquidation and the new company.
For more information on bankruptcy, liquidation, administration and all the other insolvency procedures, or should you or your company be facing financial difficulties and you need to chat, please telephone Charlotte Hutchinson on 01377 257788 and she will make you an appointment with one of our insolvency professionals at our Driffield, Hull, Grimsby, Scunthorpe or York offices. Our initial meetings are free and without obligation. Meetings can be held virtually or in any of our offices whilst observing the socially distancing guidelines.
Because we are an independent insolvency practice, we keep our overheads low and have put systems in place to deal with simple liquidations at an affordable price of from £1,995 + VAT + Disbursements. Our MVLs are from £995 + VAT + Disbursements.