Coatbridge construction boss banned from running firms for nine years

A Coatbridge construction boss has been banned from running firms for nine years after he caused the company to submit false tax returns.

The ban comes after the secretary of state accepted a disqualification undertaking from Hardip Singh Khaira after he did not dispute concealing tax to the detriment of the tax authorities.

HK Construction, the firm Mr Khaira was director and secretary of, was subject to a creditors voluntary liquidation in September 2019 bringing the firm to the attention of the Insolvency Service.

Investigators found that, between November 2011 and February 2015, Mr Khaira knowingly caused the company to submit false tax returns – some invoices had been brought down to zero rated sales to reduce the firm’s tax liability, HMRC said.

The tax authorities determined that just over £225,000 was owed by HK Construction, which increased to more than £426,000 when interest and penalties were applied for the deliberate concealment and failure to pay.

HMRC said that Mr Khaira placed the company into creditors voluntary liquidation after being made aware of the liability owed to the tax authorities, this resulted in outstanding liabilities of more than £426,000.

Mr Khaira’s nine year disqualification came into effect on August 6, as a result, he is unable to act as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

“Robert Clarke, chief investigator for the Insolvency Service, said, “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.”