Tax dodging builder gets 9 year ban
Rafal Bogdan, the director of RAF-London Limited, has been disqualified for nine years for failing to ensure that the company accounted for cash receipts totaling £1,199,000 which resulted in an estimated loss of revenue to HM Revenue & Customs of £288,414.
Following an investigation by the Insolvency Service Rafal Bogdan entered into a disqualification undertaking, which prevents him from becoming involved in the promotion, formation or management of a company for the duration of the relevant undertaking.
RAF-London Limited undertook building and construction work and entered liquidation on 29 July 2015, with liabilities to creditors of £448,351 of which £436,155 was owed to HM Revenue & Customs (HMRC) with £288,414 estimated to relate to under-declaration of VAT, Corporation Tax and Construction Industry Scheme tax from under-declared cash receipts of £1,199,000.
Mr Bogdan was the sole registered director from 28 May 2004 until the company went into liquidation on 29 July 2015. The estimated deficiency as regards creditors and shareholders was £399,649.
On 25 October 2016 the Secretary of State accepted a Disqualification Undertaking from Mr Rafal Bogdan, effective from 15 November 2016, for 9 years. The matters of unfitness that Mr Bogdan accepted were that between May 2004 and April 2009, he failed to ensure RAF-London Limited accounted to HMRC for cash receipts totaling £1,199,000 which resulted in an estimated loss to HMRC of £106,924 in VAT, £117,370 in Construction Industry Scheme Tax and at least £64,120 in Corporation Tax.
Sue MacLeod, Chief Investigator of Insolvent Investigations, Midlands & West at the Insolvency Service, said:
Company directors have a duty to ensure businesses meet their legal obligations, including paying taxes. Neglect of tax affairs is not a victimless action as it deprives the taxpayer of funds needed to operate public services.
The Insolvency Service will take action against directors who do not take their obligations seriously and abuse their position.
Notes to editors
Mr Bogdan’s date of birth is October 1974 and he is known to have resided in London.
RAF-London Limited (CRO No.05140942) was incorporated on 28 May 2004 and traded from London as a provider of building and construction services.
A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:
- act as a director of a company
- take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
- be a receiver of a company’s property
In addition that person cannot act as an insolvency practitioner and there are many other restrictions placed on disqualified directors by other regulations.
Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Further information on director disqualifications and restrictions is available.
All public enquiries concerning the affairs of the company should be made to: Insolvent Investigations, Midlands & West, 4th Floor, Cannon House, 18 Priory Queensway, Birmingham B4 6FD. Tel: 0121 698 4000. Email: Adminteam.Midlandsfirstname.lastname@example.org.
The Insolvency Service administers the insolvency regime, investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. It may also use powers under the Companies Act 1985 to conduct confidential fact-finding investigations into the activities of live limited companies in the UK. In addition, the agency authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available.
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Published: 2 December 2016
From: The Insolvency Service