Michael James Nicholas Baker and Querida Marguerita Baker, husband and wife directors of IT employment agency ExecuIT Ltd, have been disqualified from being directors for 11 years each for submitting false returns to the taxman.
Mr Baker (63) and Mrs Baker (43) each gave an undertaking not to act, manage or in any way control a company without leave of the court until (month, year). The undertaking, which has the same force as a court order, follows an investigation by the Insolvency Service.
Investigators found that Mr & Mrs Baker submitted false returns to HM Revenue & Customs (HMRC) and failed to pay the correct amount of tax between 19 April 2007 and 20 July 2011. HMRCs claim in the liquidation was 1,270,529.
ExecuIT Ltd was part of a group of companies controlled by Mr & Mrs Baker that provided IT executives to its clients on a temporary contract basis. Employees raised complaints against the couple after failing to receive their wages.
Commenting on the disqualifications, Mark Bruce, Head of Insolvent Investigations South at the Insolvency Service, said:
Company directors are protected from personal liability, but they have a duty to provide the right information to HMRC for tax purposes. These directors failed to do so and have now had their privilege removed.
Furthermore, withholding tax takes money away from vital public services, and also gives the company an unfair trading advantage over competitors. The Insolvency Service will take action against directors who fail to meet these obligations.
The disqualification should serve as a warning that the Insolvency Service will investigate and remove from the business arena, any director tempted to withhold taxes.