10-year ban served to takeaway company director
A director of a Chinese takeaway in Mid Calder, West Lothian, has been disqualified for 10 years for deliberately understating company profits.
Yi Yang Chen of Golden Earl was served a disqualification at Edinburgh Sheriff Court on 23 November 2017 following an investigation by the Insolvency Service, on behalf of the Secretary of State for Business, Energy and Industrial Strategy.
The investigation found Mr Chen had caused Golden Earl to deliberately conceal profits between 4 February 2007 and 31 May 2014 totalling £653,436 on which Corporation Tax of £135,528 was owed.
In the absence of declaration, HM Revenue & Customs (HMRC) issued an assessment in the sum of £345,479. This was made up of £135,528 for concealed Corporation Tax, £16,994 for interest and a penalty charge of £192,957.
Between 31 May 2008 and 31 May 2014, from the concealed profits, Chen received loans and advances from Golden Earl which were paid to his private bank accounts, totalling at least £615,133 giving rise to a tax liability of £155,788.
On 9 December 2015, Golden Earl went in to liquidation having failed to make payment of £501,257.
Robert Clarke, head of company investigation at the Insolvency Service said: "The public can be assured that where there have been abuses of public finance provisions which result in losses of this type, the Insolvency Service will investigate the conduct of the parties involved and take action to remove the privilege of limited liability trading for a lengthy period."
Staffordshire restaurant owner jailed for £90,000 tax fraud >>
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