Car Dealer Sentenced For Failing To Keep Company Accounts In UK

Car Dealer Sentenced For Failing To Keep Company Accounts In UK

United Kingdom – John Brian Capper, (52), from Shipley, West Yorkshire, has been sentenced to an 18-month community order, including 250 hours of unpaid work, after failing to provide books and records when his company was wound up due to alleged tax liabilities of more than £654,000.

During proceedings, the court heard the defendant, known as Brian Capper, was sole director of Ikonic Solutions Limited and sold used cars.

Ikonic Solutions was incorporated in November 2011 and initially the company operated without issue. But in February 2016, Ikonic Solutions Limited was wound up in the High Court, owing hundreds of thousands of pounds to the tax authorities.

The Official Receiver was appointed as the liquidator and started an investigation into Ikonic Solutions Limited.

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

The used car salesman, however, told the Official Receiver he had sole control of the company but had no books or records due to issues with his health. The defendant said he had lost a laptop with records and any paper receipts had been thrown away.

But the Official Receiver discovered that all business transactions were paid into his personal bank account and in November 2017, Brian Capper received an 8-year director disqualification.

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

Brian Capper 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.

On 18 May, Brian Capper was sentenced to an 18-month community order at Bradford Magistrates’ Court. He was ordered to do 250 hours of unpaid work, with a 6-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.