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Electrical contracting boss disqualified for unpaid taxes 10 May 2013

The director of an electrical company has been disqualified for four years for failing to pay his taxes.

Brett Anthony Flack, 42, has given an undertaking to the secretary of state for Business, Innovation and Skills (BIS) that he will not act as a director of a limited company from 20 May 2013 until May 2017 following an investigation by the Insolvency Service.

Flack was a director of Flack Building Contractors based in Woodford Green, Essex, which provided electrical contracting services to commercial clients and local housing associations.

The business went into liquidation on 29 July 2011 owing £253,111 to creditors.

The majority of this amount, or £222,500, was owed to HM Revenue & Customs (HMRC) in unpaid taxes and records showed that the company had unpaid taxes dating back to November 2009.

The investigation showed that Flack sought advice from an insolvency practitioner (IP) on 2 February 2011, who established that the company was insolvent and advised Flack on his options.

He told the IP that he would cease to trade on or about 11 February 2011.

But the business continued to trade while making no attempt to repay the taxes owed and incurring further tax debt, which also went unpaid.

Furthermore, the Insolvency Service found that Flack paid out £60,676 from the company to himself or for his personal benefit.

Mark Bruce, a chief examiner at the Insolvency Service, said: “Directors who seek an unfair advantage over their competitors by not paying tax are damaging commercial confidence and harming the UK’s reputation as a place to do business. They should not expect to get away with it.

“Other directors tempted to follow this path should remember that if they run a business in a way that is detrimental to either its customers or its creditors they lose the protection afforded by limited liability.”

He added: “The Insolvency Service will investigate them and seek to remove them from the business environment.”



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