United Kingdom - Company ban on VAT fraud boss

A BUSINESS owner has been banned from running any company for 11 years after failing to pay VAT totalling £274,145.

Between February 2005 and April 2005, Jason Heald, who ran Pridewell Ltd clothing access-ories firm in Simmons Street, Blackburn, imported goods from Dubai, on which no VAT was payable, and sold them in the UK charging VAT on the sales.

By doing this, Heald, 32, of Whalley New Road, put HM Revenue & Customs at risk of being subject to a Missing Trader Intra Community VAT fraud.

Typically in this fraud, the trader obtains a VAT registration number to enable him to buy goods VAT free from another EU member state, then sells on these goods in the UK to other VAT registered businesses, at VAT inclusive prices.

These businesses pay the VAT to the fraudster who goes missing without accounting to revenue and customs for the VAT due.

Heald was found not to have conducted due diligence checks with regards to trading partners, and failed to safeguard and remit VAT to customs.

This caused revenue and customs to claim for £274,145.75 in relation to unpaid VAT.

Heald also failed to ensure that adequate accounting records were maintained to show and explain the transactions of Pridewell as required by Section 221 of the Companies Act 1985.

Pridewell has now been put in to compuslory liquidation. there will be no criminal proceedings.

Source : Blackburn Citizen - UK,  dated 20/02/2008