UK bans a businessman for 9 years over fraud in tax returns.

An Indian origin businessman in Scotland submitted false tax returns to the British authorities. On being caught, he has been banned from running companies for at least the next 9 years, on the grounds of ‘deliberate concealment and failure to pay.’

The 43-year-old Hardip Singh Khaira (businessman) has been banned from presiding as a director or be directly or indirectly involved in the promotion, formation or management of a company or organization, without the permission of the court.

Hardip Singh Khaira (businessman) is based in Coatbridge in North Lanarkshire, Scotland. HK Construction is Khaira’s company that provides groundwork construction services to other companies. The business was established in May 2011 from premises in Coatbridge and since then Hardip Singh Khaira has involved himself in tax fraud. The strategy clearly backfired and he was caught and punished by UK authorities.

The Insolvency Service in the UK came to know about the fraud in September 2019, when the company was a subject to a Creditors Voluntary Liquidation. Insolvency Service looked into the matter and the fraud was disclosed completely by February 2015. It was revealed that Hardip Singh Khaira submitted false tax returns to reduce his owed liability to the UK tax authorities.

Robert Clarke who was the Chief Investigator for the Insolvency Service said regarding the crime committed by Khaira, “It was clear from our investigations that Hardip Khaira deliberately caused the construction firm to submit false returns to reduce the amount of tax the company had to pay. This is serious misconduct and a nine-year ban not only demonstrates the severity of what Hardip Khaira has done but also confirms that we will take action to remove the privilege of limited liability against those who think they can do the same.”

After looking into the entire case, it was determined by the investigators at Insolvency Service that HK Construction owed 225,000 pounds to the British tax authorities. After adding the penalties and interest on the 225,000 pounds it would amount to more than 426,000 pounds.

Some invoices had been brought down to zero-rated sale to reduce the company’s tax liability”, said the Insolvency Service.

The government ruled out the order of ‘disqualification undertaking’ to Khaira last month as the punishment of the crime he had committed. In the UK the ‘disqualification undertaking’ does not involve any court proceedings but it prevents the person from the directorship of any company or being directly or indirectly related in management, formation or promotion of any company.  Due to Khaira’s fraud, he is barred from presiding or continue his business for the next nine years, at least. He cannot receive any company’s property either.

While the Indian ethnicity of the accused, embarrasses Indians, UK’s law enforcement is pretty impressive. This incident brings out the efficiency of the disciplinary bodies of the UK and can stand as an example to any other country for ensuring the prevalence of white money and curb illegal activities in their business circle.

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