Specmar Ltd is a company that specializes in providing engineering services to the oil and gas industry. It prides itself in offering remarkable combination of expertise and competence in marine engineering, offshore construction and sub-sea design. Since it works on multitude projects, the company’s profit margin increases from time to time hence an equivalent increase in the rates of taxes it pays. The directors of the company therefore have a legal duty to ensure that tax matters are dealt with in a proper manner. What is due ought to be paid without ignoring a cent.
Elected as Specmar’s sole director, Mr. Victor Craig Morrell, breached the terms of tax payment. During his term of service as the company’s leader, Mr. Victor tampered with the profit margins by pocketing them and sadly, the company experienced strenuous trading conditions as its taxes accumulated. As a result of such incompetence, the company was wound up. To pay its creditors, it was forced to enter into the Creditors voluntary liquidation (CVL), selling its assets and distributing the proceeds to its creditors.
This raised an alarm to investigators and they decided to look into Victor Morrell’s operations and inspect why the company had suddenly gone to insolvency in his presence. After thorough investigations were carried out, it was brought to light that between August 2012 and February 2016, Victor Morrell had been filing inaccurate tax returns on the company’s behalf. He knowingly claimed input taxes even on items that were not taxable.
This incorrect filing made the director’s status to change from being Specmar’s creditor of as per August 2014 to being a debtor as its liquidation in January 2017, owing Specmar more than £350,000. He accepted the claims and was disqualified from being the company’s director, a notable legal verdict that will be made note of by insolvency practitioners Manchester and any others around the UK.
Upon signing the disqualification order, Victor was restricted from being the company’s director, taking part in the formation or management of the company and from being a receiver of the company’s property. He signed this undertaking on 24 August 2018 and the disqualification commenced on 14 September 2017.
Investigations by the Insolvency Service administers continued to be carried out on the company to find out if Craig Morell he involved any other person(s) in his fraudulent act on the company’s operations. They investigate all the compulsory liquidations and individual bankruptcies through the Official Receiver to establish why the company became insolvent. Mr Craig was barred for 7 years from this business process for a period of 7 years. Other restrictions that have not been publicized may as well apply to him. Integrity is a good weapon that brings honour.