Business

Car dealer sentenced over tax liabilities of £654,000

On 18 May 2021, John Brian Capper was sentenced to an 18-month community order at Bradford Magistrates’ Court and ordered to do 250 hours of unpaid work, with a six month alcohol treatment requirement and a 30-day rehabilitation activity requirement

The Insolvency Service has revealed that John Brian Capper, a used-car salesman was sentenced to an 18-month community order, including 250 hours of unpaid work, after failing to provide records for his company when it was wound up due to alleged tax liabilities of more than £654,000.

The company, Ikonic Solutions was incorporated in November 2011 and initially operated without issue.

However in February 2016, the company was wound up in the High Court, owing hundreds of thousands of pounds to the tax authorities. As a result, an official receiver was appointed as the liquidator and started an investigation.

Capper was requested to provide books and records to the receiver to establish the company’s full liabilities, creditors and assets.

The used car salesman told the receiver he had “sole control” of the company but had no books or records due to issues with his health and claimed that he had lost a laptop with records and that any paper receipts had been thrown away.

It was discovered that all business transactions were paid into his personal bank account, in November 2017 Capper received an eight year director disqualification.

The Insolvency Service then started criminal investigations, before Capper admitted that he deliberately disposed of records whilst suffering ill health.

He pleaded guilty to failing to deliver up books and records and failing to preserve the company’s accounting records at Bradford Magistrates’ Court on 14 April 2021.

On 18 May 2021, Capper was sentenced to an 18-month community order at Bradford Magistrates’ Court and ordered to do 250 hours of unpaid work, with a six month alcohol treatment requirement and a 30-day rehabilitation activity requirement.

Julie Barnes, chief investigator at the Insolvency Service, said: “As a company director, it was Brian Capper’s responsibility to ensure any records were up to date. Instead, the defendant ignored his tax liabilities and then failed to provide any information as to where the money was spent and who was owed.

“As this case shows, we will investigate directors who do not take their responsibilities seriously and will not hesitate to start criminal proceedings where it is appropriate to do so.”

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