The director of a Kent-based company that provided sub-contracting services to the construction industry has been disqualified for 7 years.
Amanpreet Danny Sahota of Dansah Ltd (Dansah) has been disqualified for 7 years for causing the company to submit false VAT returns to HM Revenue & Customs and trading Dansah to the detriment of HMRC, the majority creditor at the companys liquidation.
Dansah commenced trading in April 2011 supplying labour via subcontractors to the construction industry.
Mr Sahota authorised VAT returns to be submitted to HMRC requesting refunds of VAT he claimed Dansah had paid to sub contractors.
The invoices he submitted to support these did not meet the standard required by HMRC with many being undated and not specifying what goods or services had purportedly been supplied. HMRC conducted an investigation into Dansahs tax affairs and noted that the suppliers of the labour did not have the workforce to have conducted the work claimed by Mr Sahota.
These entities were ultimately compulsorily de-registered for VAT as missing traders having never submitted any VAT returns themselves.
Other invoices submitted by Mr Sahota claiming refunds of VAT paid, were issued by another limited company of which Mr Sahota was the sole director. This company was never registered for VAT, Mr Sahota stated it was dormant and had never traded. Despite this Mr Sahota was content to present these to HMRC in an attempt to falsely reclaim VAT.
HMRCs investigation determined that Dansah had used its own work force to fulfil its clients requirements without verifying those labourers on the CIS system which gave rise to further tax. Mr Sahota did not appeal HMRCs findings.
Commenting on the disqualification, Andrew Stanley, Official Receiver Chatham at The Insolvency Service, said:
Mr Sahota deliberately mislead HMRC in an attempt to avoid Dansah paying tax and attempted to reclaim tax that Dansah hadnt paid. Mr Sahota has abused the tax regime; disqualifying him as a director upholds the integrity of the insolvency and taxation regimes and also acts as a deterrent to others from repeating such misconduct in the future.