Gary Wright, director of a watch and jewellery wholesaler, has been banned from acting as a director for six*years.
The sole registered director of AS Diamonds Limited in Arlington Court, Stevenage, has been disqualified from acting as a company director for six years failing to provide adequate company records, whilst also treating HMRC detrimentally in comparison to other creditors.
The Secretary of State for Business, Energy and Industrial Strategy accepted an undertaking from Gary Wright effective from 11 October 2017.
Although Gary Wright provided some accounting records to the liquidator they were inadequate and it was not possible in particular to verify the purpose of payments to himself of over ?160,000 as well as cash withdrawals of ?40,000 and the validity of a supplier invoice to the value of ?33,000.
During the period of trading, Gary Wright caused AS Diamonds Limited to treat HMRC detrimentally in comparison to other creditors. Although AS Diamonds Limited charged VAT on its sales invoices, no VAT returns were ever submitted and HMRC therefore duly issued assessments totaling ?123,922. An analysis of the company?s bank account revealed that in excess of ?490,000 was paid out, of which, nothing was paid to HMRC in respect of its accruing VAT debt.
Additionally, during the period 11 December to 22 December 2014, ?49,967 was transferred to Gary Wright?s personal bank account which was to the detriment of creditors in general.
Commenting on the disqualification, David Brooks, a Chief Investigator with the Insolvency Service said:
The period of this disqualification contained within the undertaking signed by Gary Wright sends a clear message to other company directors.
Company directors have a statutory duty under the Companies Act to keep adequate company records which should amongst other things satisfactorily explain payments.
Further, much of the public service is funded by the correct amount of taxes being paid.
By not declaring and paying the correct amount of taxes, Gary Wright has ultimately deprived the public services and the public from receiving the services it deserves. The Insolvency Service therefore will not hesitate to remove them from the business environment in order to protect the public.