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The Analysis News & Opinions


Bans for directors of sign fi rm who failed to pay tax


Husband and wife directors also failed to maintain and preserve adequate accounting records for the company. Robert Headspeath and Mandy Headspeath both of Galashiels, Scotland,


have been


disqualifi ed as directors for six years each. The couple were directors of Advanced Signs Ltd from March 2015 until February 2020 when the company went into liquidation following a winding-up petition by the tax authorities.


At the point of liquidation, the company


owed £70,044 in unpaid tax to the public purse. The Insolvency Service investigation, which


began after the company went into liquidation, found that from April 2018 neither director had ensured that the company’s accounts and records were adequately maintained. It was therefore not possible to determine


the true source of various income, and whether these related to legitimate business by the fi rm, including over £70,000 deposited at ATMs during this period. Large payments of nearly £60,000 could not be explained as well as a further £23,080 paid out in cheques. The accuracy of assessments to the tax authorities could also not be verifi ed, although the investigation did establish that from at least November 2017 the directors failed to ensure that the company dealt with its tax aff airs. There were unpaid tax returns dating from this period, and the company failed to fi le any further tax returns after the period ended 30 June 2019. The secretary of state for business energy and industrial strategy accepted a disqualifi cation undertaking from both Robert Headspeath and Mandy Headspeath. In both cases, the bans are eff ective from 7 February 2022 and last for six years. The disqualifi cation undertakings prevent


both from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court. Rob Clarke, chief investigator, Insolvency said: “Directors have a duty to


Service


ensure that their companies maintain proper accounting records, and, following insolvency,


March 2022


deliver them to the offi ce-holder in the interests of fairness and transparency. Without a full account of transactions it is impossible to determine whether a director has discharged his duties properly, or is using a lack of documentation as a cloak for impropriety. These two directors have paid the price for failing to do that, and now cannot carry on in business other than at their own risk. “Directors have a fi rm duty to ensure they


deal properly with tax matters and pay what is due. Taxation revenue provides for the benefi t of all and cannot simply be ignored.” Meanwhile, the owner of a Glasgow pizzeria an eight-year ban after failing


failed to provide company accounting records, despite numerous requests. Due to a lack of records, no-one could


determine the real reason for nearly £650,000 worth


of income into Kleida Pizzeria’s


accounts or what the company spent more than £736,000 on. Further


enquiries uncovered that the to


maintain proper books and records and not able to explain what £50,000 bounce back loan was used for. Kleida Pizzeria Ltd was incorporated in April 2014 and the sole director was Ilir Bajrami (61) from Glasgow. Liquidators were appointed, however, to close Kleida Pizzeria as the company could not pay a substantial tax bill. Kleida Pizzeria formally entered into creditors voluntary liquidation in July 2020, which triggered an investigation by the Insolvency Service. Investigators uncovered that Ilir Bajrami failed to co-operate with the liquidators and


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pizzeria also received a £50,000 Bounce Back Loan on 7 May 2020 to be used to help the fi rm during the pandemic. But only seven days later, Ilir Bajrami caused the company to transfer £90,000 to an unknown account, which included the £50,000 bounce back loan. The Insolvency Service


launched


disqualifi cation proceedings and on 27 January 2022 the case appeared before Sheriff Reid in Glasgow Sheriff Court. In Ilir Bajrami’s absence, Sheriff Reid gave the pizzeria boss an eight-year disqualifi cation after he failed to ensure Kleida Pizzeria Limited maintained,


preserved and delivered up


adequate accounting records. The ban began on 24 February 2022 and


means Ilir Bajrami is prevented both from directly, or indirectly, becoming involved in the promotion, formation or management of a company, without the permission of the court.


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