Case details for NICOLA FRANCIS  CHEDIAK

Name: NICOLA FRANCIS  CHEDIAK

Name: Coastline Cars Limited

Date of Birth: 15 / 9 / 1972

Date Order Starts: 10 / 6 / 2019

Disqualification Length: 6 Years 0 Month(s)

CRO Number: 06789804

Last Known Address: 15 Bethia Road,, , Queens Park, , Bournemouth, BH8 9BD

Conduct: 1 From 01 February 2017 to 15 November 2017, the date when she resigned, Nicola Francis Chediak ("Mrs Chediak") failed to ensure Coastline Cars Limited ("Coastline") maintained and/or preserved sufficient accounting records. As a consequence it is not possible to: 1.1 Ascertain the income of Coastline, and its sales from at least £3,485,341 received in its bank account; 1.2 Ascertain whether payments made by cheque totalling £2,450,063 and transfers from the bank account totalling £301,359 were made for Coastline's business purposes; 1.3 Ascertain Coastline's liability for VAT; 1.4 Ascertain Coastline's liability for PAYE/NIC; 1.5 Establish the true position with regard to the assets and liabilities of Coastline as at the date of Liquidation. 2 She caused or allowed Coastline to fail to deal properly with its taxation affairs in respect to VAT to the detriment of Her Majesty's Revenue and Customs ("HMRC") in that: - 2.1 Coastline was on VAT Margin Scheme in respect of second hand goods. 2.2 Coastline filed VAT returns pursuant to the VAT Margin Scheme and paid the liabilities on those returns. 2.3 On 22 April 2016 HMRC began an enquiry into Coastline's accounts for the period ended 31 January 2015 and its VAT returns to the period 03/16. 2.4 HMRC inspected Coastline's records and concluded that they were not compliant with the requirements of the VAT Margin Scheme. Accordingly, as provided for by the Margin Scheme, HMRC issued an Officer's Assessment for the full amount of Coastline's output tax for the periods 06/13 to 09/16 in the total sum of £2,245,343 together with interest of £132,170 on 23 June 2017. 2.5 HMRC subsequently issued Civil Penalties in respect of the above mentioned assessments totalling £522,042 2.6 Notwithstanding that Coastline's accountants advised HMRC that Coastline was complying with its record keeping obligations on 23 August 2016, such records as have been received by the Official Receiver do not show that Coastline was complying with those requirements in that, inter alia: - 2.6.1 There is no evidence of a stock book being kept; 2.6.2 Sales invoices are not numbered; and 2.6.3 Purchase invoices are not numbered; 2.7 HMRC's claim in respect of VAT was £2,447,870 

This information is correct as at 21 / 5 / 2019


Name: John Jude Chediak

Name: Coastline Cars Limited

Date of Birth: 16 / 2 / 1970

Date Order Starts: 10 / 6 / 2019

Disqualification Length: 7 Years 0 Month(s)

CRO Number: 06789804

Last Known Address: 618a Castle Lane West, , , , , BH8 9UG

Conduct: 1. From 01 February 2017 to 16 April 2018, the date of winding up, John Jude Chediak (“Mr Chediak”) failed to ensure Coastline Cars Limited (“Coastline”) maintained and/or preserved sufficient accounting records or in the alternative failed to deliver up to the Official Receiver such records as were maintained. As a consequence it is not possible to: 1.1. Ascertain the income of Coastline, and its sales from at least £4,081,568 received in its bank account; 1.2. Ascertain whether payments made by cheque totalling £2,578,127 and transfers from the bank account totalling £410,329 were made for Coastline’s business purposes; 1.3. Ascertain Coastline’s liability for VAT; 1.4. Ascertain Coastline’s liability for PAYE/NIC; 1.5. Establish the true position with regard to the assets and liabilities of Coastline as at the date of Liquidation. 2. He caused or allowed Coastline to sell or dispose of 42 vehicles owned by NextGear Capital UK Ltd (“Nextgear”) without accounting to Nextgear for the proceeds of sale of those vehicles pursuant to the used vehicle and stocking agreement with Nextgear and caused Coastline to sell 3 vehicles to Nextgear which it had not purchased, thereby causing a loss to Nextgear of at least £516,186. In that: - 2.1. Coastline entered into a Used Vehicle and Stocking Agreement with Coastline on 29 July 2014 (“the Agreement”); 2.2. The Agreement provided that Nextgear would fund the purchase of vehicles by Coastline, taking title to the vehicles, and allowing Coastline to sell the vehicles provided that the sale of the vehicles and the sums due in respect of the vehicles were paid to Nextgear forthwith upon any sale of the vehicles. 2.3. Nextgear carried out an audit of Nextgear on 26 January 2018 and on 02 February 2018 took steps to secure their vehicles. 2.4. Nextgear had 70 vehicles with Coastline. It recovered 25 vehicles from Coastline, but 45 were not available, in respect of which Coastline owed Nextgear £516,186. 2.5. He provided sales invoices to Nextgear in respect of 17 of those vehicles. 2.6. He also informed Nextgear that 3 of the vehicles that Coastline had notified to Nextgear as purchased and therefore sold to Nextgear, in the total amount of £88,622, had not been purchased by Coastline. 2.7. By reason of the above Nextgear has suffered a loss of at least £516,186. 3. He caused or allowed Coastline to fail to deal properly with its taxation affairs in respect to VAT to the detriment of Her Majesty’s Revenue and Customs (“HMRC”) in that: - 3.1. Coastline was on VAT Margin Scheme in respect of second goods. 3.2. Coastline filed VAT returns pursuant to the VAT Margin Scheme and paid the liabilities on those returns. 3.3. On 22 April 2016 HMRC began an enquiry into Coastline’s accounts for the period ended 31 January 2015 and its VAT returns to the period 03/16. 3.4. HMRC inspected Coastline’s records and concluded that they were not compliant with the requirements of the VAT Margin Scheme. Accordingly, as provided for by the Margin Scheme, HMRC issued an Officer’s Assessment for the full amount of Coastline’s output tax for the periods 06/13 to 09/16 in the total sum of £2,245,343 together with interest of £132,170 on 23 June 2017. 3.5. HMRC subsequently issued Civil Penalties in respect of the above mentioned assessments totalling £522,042 3.6. Notwithstanding that Coastline’s accountants advised HMRC that Coastline was complying with its record keeping obligations on 23 August 2016, such records as have been received by the Official Receiver do not show that Coastline was complying with those requirements in that, inter alia: - 3.6.1. There is no evidence of a stock book being kept; 3.6.2. Sales invoices are not numbered; 3.6.3. Purchase invoices are not numbered; HMRC’s claim in respect of VAT was £2,447,870 

This information is correct as at 21 / 5 / 2019



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