A borough restaurant director has been served with a ban after it was not possible to verify the "legitimacy" of hundreds of thousands of pounds coming in and going out of a business, a report has found.
Dominic Bacci failed to ensure Michael 1987 Ltd “maintained and/or preserved adequate accounting records” or “following liquidation failed to deliver up records to the liquidator when requested” from October 1, 2019 to April 21, 2022 (date of liquidation), a report by The Insolvency Service states.
The report said it has not been possible to confirm the total amount credited to the firm bank account of at least £786,352 between those dates “represents total legitimate income of the company”.
The Insolvency Service said it was also unable to verify if the money debited from the company (at least £783,556) in that time was legitimate expenditure.
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The government agency could not “establish the extent and nature of Mr Bacci’s remuneration” in that period and it was unable to confirm “whether payments totalling £59,993 to a third party were payments in the normal course of trade”.
It was also not possible to “establish whether payments totalling £76,281 paid to a relative of the director and a former director of the company were payments in the normal course of trade”.
The report added that the agency was unable to “establish whether payments totalling £68,882 to third parties holding the same surname as the director were payments in the normal course of trade”.
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It was not possible to verify the “true liability to HMRC (HM Revenue & Customs) as assessments were raised by HMRC for VAT periods ending 08/20 to liquidation, as returns were not submitted”.
Upon liquidation, HMRC made a claim adding up to £62,621, which consisted of £41,711 of PAYE, £14,553 of VAT and £5,276 of corporation tax.
A total of £66,278 was owed to creditors.
Mr Bacci, 45, whose last known address was Sergeants Lane, Whitefield, has been disqualified from being a director for five years.
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