The director of a failed fashion company had hoped to gain an advantage over his competitors by not paying tax.
Surinder Singh set up Lady Fashion UK three years ago, manufacturing women’s clothes in Leicester city centre.
The Insolvency Service, which investigated the 62-year-old company director, found he had failed to pay £98,000 in taxes.
The business, which was based in Eldon Road in the Lee Circle area, was forced into liquidation in July 2019.
The Official Receiver – the government body responsible for dealing with court-ordered liquidations – investigated Singh’s conduct during his time as director of the company.
It was found that Singh had failed to ensure Lady Fashion kept accounting records and also that he had withdrawn £180,000 in cash from the company between November 2017 and March 2019 and could not explain the reasons for the withdrawals to the Official Receiver.
Following the investigation, Singh has been banned from acting as a company director for a period of six years.
He did not dispute the accusation that he failed to ensure the company kept adequate accounting records and that the company failed to pay the proper taxes.
Robert Clarke, chief investigator at the Insolvency Service, said: “Surinder Singh tried to cloak his actions through a lack of records and attempted to gain an unfair competitive advantage by not paying the tax due.
“Directors have a clear obligation to make sure they maintain full and accurate records for their business and we will take robust action against those who fail to maintain these required standards, as this case shows.”
Earlier this month, Singh signed the undertaking that he would not act as a company director for the next six years and it came into effect on December 22.