Blackburn directors disqualified for tax avoidance
Two directors of Blackburn-based BCP (NW), a suspended ceiling contractor, have been disqualified for a total of 11 years, following an investigation by the Insolvency Service's company investigations team in Manchester.
Paul Andrew Charles Sterry, 44, of Bacup, Lancashire and Darren Alan McGaughey, 45, of Bolton, Lancashire gave undertakings to the Secretary of State for Business, Innovation & Skills not to manage or in any way control a company or be a director for six years and five years respectively.
The investigation found that between November 2009 and November 2010, Sterry and McGaughey failed to ensure that the company paid £598,547 owed in tax to HM Revenue & Customs.
The directors also failed in their statutory duty to ensure that the company maintained adequate accounting records and provided investigators with computerised records which were insufficient to verify the company's financial dealings.
The company was placed into administration on 5 November 2010 with estimated debts of £1,295,572.
Claire Entwistle, director of company investigations North at the Insolvency Service, said: "Being a company director brings with it certain responsibilities and the Insolvency Service will rigorously pursue directors who seek unfair advantage over their competitors by not paying their taxes.
"Failure to comply with the basic requirements of being a director will result in the protection of limited liability being withdrawn, as these two directors have found out."