Press release: 7 year ban for Leicestershire director for under declaring VAT

On 11 September 2017, the Secretary of State for Business, Energy, & Industrial Strategy, accepted a disqualification undertaking from Ms Townsend from 2 October 2017 for 7 years.

The company went into liquidation on 6 April 2016 owing £110,236 to creditors, of which £58,522 related to Value Added Tax (VAT).

The unfit conduct that led to Ms Townsend giving the undertaking was that she submitted incorrect VAT returns to HM Revenue & Customs (HMRC) which resulted in the company receiving £21,588 in VAT reclaims whereas at least £30,542 should have been paid to HMRC equivalent to an under declared amount of at least £52,130.

Martin Gitner, Deputy Head of Investigations with the Insolvency Service said:

Under-declaration of the VAT due by a company deprives the exchequer of the monies needed to provide public services. In co-operation with HMRC, the Insolvency Service will not hesitate to investigate such misconduct with disqualification as a director the likely outcome.

Notes to editors

Ms Christie Elizabeth Townsend, date of birth October 1947 and she resides in Wigston.

Greendeal Helpline Limited was incorporated on 7 February 2012. The company traded as a lead generator.

Ms Townsend was a director from 7 February 2012 to liquidation.

The Company went into Creditors Voluntary Liquidation on 6 April 2016 with an estimated deficiency of £106,721.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

  • act as a director of a company
  • take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
  • be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

BEIS’ mission is to build a dynamic and competitive UK economy that works for all, in particular by creating the conditions for business success and promoting an open global economy. The Criminal Investigations and Prosecutions team contributes to this aim by taking action to deter fraud and to regulate the market. They investigate and prosecute a range of offences, primarily relating to personal or company insolvencies.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.

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Link: Press release: 7 year ban for Leicestershire director for under declaring VAT
Source: Gov Press Releases