Najeb Kosar, the Managing Director of JA Supermarket Ltd (JA), has been disqualified for 6 years for purchasing goods subject to unpaid excise duty and failing to carry out adequate checks to verify the duty had been paid.
Mr Kosar also allowed JA to employ a worker who was not entitled to work in the UK which resulted in a penalty been issued by the Home Office Immigration Enforcement Department.
Mr Kosar of Walker, Newcastle Upon Tyne, signed a disqualification undertaking on 7 August 2016, which, from 31 August, prevents him from directly or indirectly becoming involved in the promotion, formation or management of a company until 2013.
Robert Clarke, Chief Investigator at the Insolvency Service, said in respect of the non payment of Excise duty and the employment of an illegal worker:
The Insolvency Service will rigorously pursue traders who seek an unfair advantage over their competitors by not paying Excise duty to the Government. If you run a limited company, you have statutory protections as well as obligations. If you fail to comply with your obligations, The Insolvency Service will investigate you and you could lose the protection of limited liability.
The Insolvency Service rigorously pursues directors who fail to pay fines imposed by the government for breaking employment and immigration laws. We have worked closely in this case with our colleagues at the Home Office to achieve this disqualification.
The director sought an unfair advantage over his competitors by employing an individual who did not have the right to work in the UK in breach of his duties as a director.
The public has a right to expect that those who break the law will face the consequences. Running a limited company, means you have statutory protections as well as obligations. If you fail to comply with your obligations then the Insolvency Service will investigate you.
Carl Gordon who is a Finance and Debt Recovery Officer within the Civil Penalty Compliance Team of the Home Office, said:
Illegal working is not victimless. It undercuts honest employers, cheats legitimate job seekers out of employment opportunities and defrauds the taxpayer.
Businesses should be aware that they have a duty to check that their staff have permission to work in the UK. We are happy to work with employers who play by the rules but those who do not should know that they will not go under our radar.