East Ham car garage owed £250,000 in tax

13:16 15 November 2012

A man has been banned from running his MOT and repair garage in East Ham for six years after he failed to pay over £250,000 in tax.

Nagaratnam Rathapathiranathan, the director of Capital Autos Ltd in Milton Avenue, was called a “serial tax dodger” by The Insolvency Service who disqualified him from running a limited company until 2018 following an investigation.

The limited company has been issued three winding up petitions in the past that they have settled with HMRC but Rathapathiranathan continued to trade without paying VAT, racking up a debt of £264,000.

He also failed to keep adequate financial records for the garage as cheque payments of over £465,000 could not be accounted for.

The business then breached the terms of a Company Voluntary Arrangement (CVA) by failing to pay tax.

Capital Autos Ltd was placed into creditor’s voluntary liquidation on January 18 and Rathapathiranathan’s disqualification comes into force on November 29.

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