Restaurateurs disqualified for abusing the tax regime

Two restaurateurs, Paul Anthony Podvoiskis from Warwickshire and Allan Ho from North Lanarkshire, have received a a five-year court-ordered disqualification and a nine-year disqualification undertaking, respectively, for abusing the tax system.

According to a government statement, the pair caused the companies they were directors of to abuse the tax regime and as a result have both been banned from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

Mr Podvoiskis was the director of Candy Experience Limited, which ran public houses and restaurants across the south west of England. 

According to an investigation into the business, Candy Experience failed to submit monthly VAT returns from August 2015 up until the date of liquidation; owed outstanding PAYE and National Insurance contributions dating back to 2014-15; and failed to settle its tax liabilities. At the point of liquidation, the tax authorities claimed more than £470,000, which remains outstanding.

Further enquiries established that Candy Experience’s bank records received more than £3.8 million into its account, however just over £115,000 was paid to the tax authorities and £1,153 in business rates was paid to the local authorities, while the remaining £3.68 million was used by the company to pay trade creditors, wages and other operational costs. 

Allyan Limited traded as a takeaway restaurant called Canton Cuisine from Union Street, Larkhall. However, the company ceased to trade in November 2018 before being wound-up by the courts in July 2019 following a petition from the tax authorities.

After the company was liquidated, investigators uncovered that for nearly six years between November 2010 and August 2016, Mr Ho caused Allyan Limited to deliberately suppress its sales and delivery income in order to conceal its true tax liabilities.

The tax authorities raised several tax assessments to recover tax owed and by November 2018, Allyan Limited’s tax liability increased to more than £500,000, which also included penalties for deliberate concealment. In the absence of payment from the company, the tax authorities lodged a winding up petition resulting in the company being placed into compulsory liquidation on 30 July 2019. 

"The majority of directors take their responsibilities seriously but Paul Podvoiskis and Allan Ho both deliberately caused their companies to abuse the tax regime, when they failed to pay the correct amount of tax," said Keith Owen, director of investigations and enforcement services for the Insolvency Service.

"Both restaurateurs have received substantial bans for their misconduct and this should serve as a clear warning to other directors that neglecting their statutory duties could lead to being removed from the corporate arena."