Restaurant Director in Colchester Receives an 8-Year Disqualification

The director of a restaurant based in Colchester has been handed an eight-year ban on becoming the director of a company or taking part in the formation, promotion or management of a limited liability partnership, starting from 11 April 2017.

Moulana Mohammed Abdul Goffar Khan, the director of Colne Valley Restaurant Limited, was found to employ one illegal worker, failed to keep accurate records of the company’s accounts and understated the business’ profits in order to pay a lower tax rate.

The discovery comes after an investigation by the Insolvency Service – who were notified after officers working for the HMRC  visited the premises in Colchester – discovered the mis-matched accounts. Their investigations also found that the company had been recording their sales as underpriced and ingredients as overpriced in an attempt to receive a lower tax bill.

Robert Clarke, the Head of Insolvent Investigations, commented:

“The director sought unfair advantages over his competitors by failing to ensure that profits were properly recorded and by employing individuals who did not have the right to work in the UK, in breach of his duties as a director.”

The director sought unfair advantages over his competitors by failing to ensure that profits were properly recorded and by employing individuals who did not have the right to work in the UK, in breach of his duties as a director.”

The Home Office Immigration Enforcement also visited the premises of Mr Khan’s restaurant company on 4 October 2013. It was then that the employment of an illegal worker was uncovered, and Mr Khan was handed a penalty of £5,000. However, the penalty fee was unpaid and the company went into Creditors Voluntary Liquidation on 19 May two years later with no assets, and liabilities amounting to £38,514.

Mr Khan is under the disqualification for eight years, meaning that the ban will be lifted in 2025.