7-year bankruptcy restriction for long-term failure to file tax returns or pay creditors | WPN World People News

Mr Kalemeera’s restriction follows an investigation by the Insolvency Service.

Mr Kalemeera (47) was ordered by the court, to be bound by the restrictions set out in insolvency law which a bankrupt is subject to until they are discharged from bankruptcy – normally 12 months – until October 2021. The court made the order in February 2015, backdating the restriction to October 2014.

In addition, Mr Kalemeera cannot manage or control a company during this period without leave of the court.

The investigation found that Mr Kalemeera, who traded at Pool Cottage Residential Home, Melbourne in Derbyshire, had neglected his business affairs between April 2004 and July 2013. In doing so, he increased his liability to HMRC by £176,403.

The investigation also found payments into Mr Kalemeera’s business bank account in the period of April 2012 and March 2013 totalled £396,898.70, but only £135 was paid to HM Revenue & Customs despite his liability to them.

In addition, between June 2013 and July 2013, despite facing bankruptcy, Mr Kalemeera made payments from his bank account of £6,500 which he attributed to his own wedding expenses.

On 8 July 2013, a Bankruptcy Order was made against Mr Kalemeera on a petition presented by HMRC. His total deficiency was around £876,863.

Commenting on the case Alan Draycott, UK Official Receiver for Nottingham said,

“Mr Kalemeera’s neglect of his business affairs over 9 years meant that the crown ended up losing over £175,000. His failure to pay tax gave him an unfair advantage over traders paying tax and fell well below that expected of someone engaged in business.”

“His spending of £6,500 on his own wedding knowing he faced bankruptcy, showed his disregard for the tax system. This 7 year restriction should help protect local businesses to compete on a level playing field.”

Source: UK Insolvency Service