Concealing tax liabilities lands takeaway boss with ban

, , Leave a comment

Raja Tandoori Limited was incorporated in January 2010, with Kulwant Singh Lally (58) registered as the company director.

From February 2013, the company traded as a takeaway from premises on Old Sneddon Street. But in July 2018, Raja Tandoori was petitioned to be wound-up and a few months later in September 2018, liquidators were appointed to formally wind-up the company.

The compulsory liquidation brought Raja Tandoori to the attention of the Insolvency Service, who conducted investigations into Kulwant Lally’s conduct.

Investigators uncovered that Kulwant Lally, from Paisley, claimed to have incorporated the company to protect the trading name. Raja Tandoori, however, was used as a vehicle for trading but failed to register with the tax authorities.

This meant that for five years between February 2013 and February 2018, Raja Tandoori failed to pay any tax, resulting in the tax authorities claiming back-dated tax payments and a fine to value of £134,000.

Raja Tandoori failed to pay its tax liabilities, causing the tax authorities to petition the courts to wind-up the company.

On 23 June 2020, the Secretary of State accepted a disqualification undertaking from Kulwant Lally, after he did not dispute that he has concealed tax to the detriment of the tax authorities.

Kulwant Lally’s ban is effective from 14 July 2020 after which he is banned for nine years from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

Rob Clarke, Chief Investigator, said:

Company directors have a legal responsibility to ensure their companies pay the correct amount of tax but Kulwant Lally clearly failed to do this for as long as the takeaway was trading.

Nine years is a substantial ban, removing Kulwant Lally from the corporate arena, and should serve as a start warning to those directors who think can renege themselves of their duties.

Notes to editors

Kulwant Singh Lally is from Paisley and his date of birth is December 1961.

Company number SC370808

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of restrictions.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct.

You can also follow the Insolvency Service on:

Revision History:

 

Leave a Reply