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Three restaurant directors have been disqualified after submitting inaccurate tax returns

9 January 2020

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Three restaurant directors have been disqualified after submitting inaccurate tax returns

Jalal Ahmed of Southsea, Satokh Singh Dhanda and Mohammad Motiur Rahman, both of Southampton were the directors of Rancho Steak House (Poole) Ltd.

The South American-style restaurant was incorporated in July 2011.

Between April 2012 and July 2017, the company filed tax returns totalling over £410,000 making payments of £375,000 against them.

Following enquiries from the tax authorities, investigations were done, and it was discovered that the company had under-declared the tax amounts which were owed, by £120,000. The directors also owed outstanding tax on loans they received through the company and had made PAYE and national insurance errors.

Due to the under-declaration, more corporation tax was owed from the additional company profits. The tax authorities advised the directors of this.

In August 2018, Rancho Steak House entered a creditors voluntary liquidation following a claim of £810,000 made by HMRC, which triggered further investigations by the Insolvency Service into the conduct of the directors.

After not disputing that they had failed to ensure accurate tax information was sent to HMRC, the three directors were each banned for six years. This means they are now each unable to form, promote or manage a limited company for six years.

All in all, this should help to protect HMRC from future losses.

If you are a director of a company then it is essential that you know your responsibilities and act in an appropriate manner.  If you are worried about this you can read our worried directors guide

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