Cardiff restaurateur must pay £34,000 for ignoring trading ban

21/05/2012

A Cardiff restaurateur has been ordered to pay almost £34,000 for failing to pay a security bond against potential company losses.

Darren Beddis of Landmark Place, Churchill Way, Cardiff was asked by HM Revenue & Customs (HMRC) to pay the security bond when he registered his Penarth restaurant for VAT. His previous enterprise had a history of non-compliance, and the £84,855 bond was required as an offset against any VAT liability in the future. But Beddis failed to pay the security and continued to trade until he sold the business, which continues to trade under new ownership.

Catrin Davies, District Crown Prosecutor for the Crown Prosecution Service's Wales Complex Casework Unit, said:

"The CPS is committed to working closely with HMRC in order to increase compliance with VAT legislation. The continued loss to the public purse in offences of this nature is unsustainable in the current climate - it is honest and hardworking members of the public who are the ultimate victims."

Simon De Kayne, Assistant Director, Criminal Investigation for HMRC said:

"Insolvent traders contribute to the UK's tax gap so anyone registering for VAT, who has a previous history of failed enterprises, may be asked for security against potential losses. This is certainly the case where a business ceases to trade only to be replaced by a new one offering similar or identical services. 

"It is only right to tackle non-compliance, not least to reassure those businesses who do pay their dues that we will take precautionary action against those who may not."

Beddis failed to appear before Cardiff Magistrates Court on 16 May but was sentenced in his absence. He was fined £600 for each of six offences of supplying taxable goods and services whilst a security bond remained unpaid. In addition he was told to pay compensation of £30,000, costs of £200 and a £15 victim surcharge.