Benny Albert Lazar, the director of beauty saloon The Synergy Spa Limited, based in Northwood, greater London, has been disqualified for four years for failing to pay tax. The disqualification follows an investigation by The Insolvency Service.
Mr Lazar, 36, of Ruislip, Middlesex 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 31 January 2013. Synergy, which provided beauty treatments and products to its customers, went into liquidation on 9 July 2010 owing at least 153,391 to creditors, including 110,174 to HM Revenue and Customs (HMRC) in unpaid tax.
HMRCs records show that Synergys unpaid taxes dated back to January 2008, when it commenced trading. During its 26 months of trading, Synergy paid just 20,163 towards its tax liabilities.
As well as the beauty business, Mr Lazar was also the sole director of a bar, 19th Hole Ealing Limited, which went into liquidation on the same day as Synergy, owing 74,934 to its creditors, including 50,934 to HMRC.
The assets of 19th Hole were sold to Mr Lazars other company, R&L Ruislip Taverns Limited (R&L Ruislip) for 6,000. R&L Ruislip went into liquidation less than a year later, on 20 April 2011, owing 21,058 to HMRC.
In total, the three companies racked up a debt of 182,166 in unpaid tax.
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 they could be removed from the business environment.