Anthony Disomma, director of construction company, Company Design Limited, based in Basildon, Essex, has been disqualified for five years for using the companys last remaining funds to pay an associated company even though he owed this money in unpaid taxes.
The disqualification follows an investigation by Company Investigations at The Insolvency Service.
Mr Disomma, 52, of Basildon Essex has given an undertaking to the Secretary of State for Business, Innovation and Skills that he will not act as a director of a limited company from 11 March 2013 until March 2018.
Company Design Limited, which specialised in fitting suspended ceilings and partitions in commercial properties, went into liquidation on 23 August 2011 owing at least 90,000 to creditors. The majority of this debt was made up of 75,000 owed to HM Revenue and Customs (HMRC) in unpaid taxes. HMRCs records show that the company had unpaid tax arrears from October 2010.
The Insolvency Service investigation showed that on 1 August 2011, Mr Disomma sought advice from an Insolvency Practitioner regarding his companys financial position. He was told that the company was insolvent and instructed for it to be placed into liquidation. Then, just nine days later, he signed a cheque for 25,000 payable to an associated company. The cheque was cleared on 12 August 2011, causing the companys bank account to be overdrawn and leaving no money to pay to HMRC.
Commenting on the disqualification, Mark Bruce, a Chief Examiner at The Insolvency Service said:
Directors who seek an unfair advantage over their competitors by not paying tax are damaging commercial confidence and harming the UKs reputation as a place to do business. They should not expect to get away with it.
Other directors tempted to follow this path should remember that if they run a business in a way that is detrimental to either its customers or its creditors they lose the protection afforded by limited liability. The Insolvency Service will investigate them and seek to remove them from the business environment.