Lee Michael Battle, the sole director of a Liverpool taxi firm, has been disqualified from acting as a director of a limited company by Liverpool County Court, for eight years for failing to pay tax or keep proper accounting records.
The order, which started on 20 September 2013, followed an Insolvency Service investigation and means that he cannot be a director, manage or control a company until 2021.
The investigation found that Mr Battle had been the sole director of Yorkspeed Ltd trading as City Kabs from May 2006. The company operated as a taxi firm from Moss Way, in Croxeth, Liverpool. A lot of the companys transactions were cash based as is usual with cab companies.
The accounting records delivered up to the Liquidator, as a director a company in liquidation is required to do by law, were insufficient to explain more than 700,000 cash withdrawals, over 40,000 of bank transfers and more than 13,500 of cheques, between August 2009 and March 2011.
Mr Battle also failed to explain why the company made lump sum payments of over 40,000 each to both himself and a family member.
The company also failed to pay sufficient money to HMRC in respect of VAT and PAYE/NIC in the last two years of trading which resulted in a debt of more than 225,000.
Robert Clarke, Head of Insolvent Investigations North, at the Insolvency Service, said:
Directors who operate cash-based businesses have to maintain sufficient records to explain where the money has gone, and following insolvency make sure that such records are delivered up for scrutiny by the relevant bodies.
By failing to do this, HMRC cannot be sure that all funds received by the company were used for legitimate purposes.
The substantial period of this disqualification reflects the fact that when a company fails to keep adequate financial records it is simply not possible to determine whether there has been other, more serious, impropriety in relation to the management of its affairs.