Kandasamy Ganeshkumar, 60, a London accountant has been fined and ordered to pay compensation for failing to pay a security bond enforced by HM Revenue and Customs (HMRC).
He was required to pay a security bond of £83,463, known as a ‘Notice of Requirement’ to protect the public purse against any future tax defaults or company losses, based upon his previous trading history. But, Ganeshkumar failed to pay the bond and continued to make taxable supplies – contravening the Value Added Tax Act 1994 – and has run up VAT debts of more than £100,000.
Ganeshkumar admitted one offence of making taxable supplies, while the bond remained unpaid, at Hammersmith Magistrates Court on 12 September, 2017. He was fined £800 and ordered to pay £380 costs.
Mark Cox, Assistant Director, Fraud Investigation Service, HMRC, said: “Ganeshkumar was given the opportunity to continue trading legitimately but he chose to flout the law. It is only right that we tackle those businesses who fail to play by the rules by taking such action.”
Her Majesty’s Revenue and Customs (HM Revenue and Customs or HMRC) is a non-ministerial department of the UK Government responsible for the collection of taxes, the payment of some forms of state support and the administration of other regulatory regimes including the national minimum wage. HMRC was formed by the merger of the Inland Revenue and Her Majesty’s Customs and Excise, which took effect on 18 April 2005.