Case details for Adnan Ahmed

Name: Adnan Ahmed


Date of Birth: 5 / 10 / 1984

Date Order Starts: 22 / 5 / 2019

Disqualification Length: 7 Years 0 Month(s)

CRO Number: 07092285

Last Known Address: 64 Old Hall Lane,, , Longsight,,, , MANCHESTER, M13 0UD

Conduct: 1. Mr Adnan Ahmad (“Mr Ahmad”) failed to ensure that AFA Marketing Ltd (“AFA”) maintained and/or preserved adequate accounting records of AFA Marketing Ltd for the period 01 July 2015 to Liquidation on 03 November 2017, or in the alternative, following liquidation he failed to deliver up to the Liquidator such records as were maintained and/or preserved. As a result it has not been possible to:

  • Verify in the absence of sales invoices or other adequate records, whether £33,255 paid into its bank account constituted the total income due to AFA, and whether any book debts were outstanding at liquidation.
  • Deduce in the absence of purchase invoices or other adequate records, the reasons for payments from AFA’s bank account in the period 01 July 2015 to Liquidation on 03 November 2017 totalling £31,697 and whether those transactions were in the best interests of AFA.
  • Verify what assets AFA owned at liquidation or what had happened to the assets recorded in it year end accounts. Professionally prepared year end accounts for the period ending 31 January 2015 record ‘tangible assets’ of £44,160. At liquidation AFA had no assets so it is not known what happened to those assets. If they were sold it is not known whether that was for a fair value or how any sales proceeds were used.
  • Verify the accuracy of assessments totalling £16,328 being raised by HMRC on an average basis for the VAT quarters ended 30.04.16 to 31.01.17 in the absence of sufficient invoices.
  • Deduce the extent of his drawings from AFA and whether a Director’s Loan account (DLA) existed at liquidation. 2. He failed to ensure AFA submitted accurate VAT returns to HMRC for the period from 07 September 2015 to its liquidation on 03 November 2017 resulting in an outstanding liability to HMRC of £108,464 as at the date of Liquidation. In that:
  • According to HMRC Ledgers AFA submitted repayment VAT returns for the quarters ending 31 July .2012; 31 October 2012; and then for the 7 quarters from 30 April 2013 to 31October 2014 which claimed a total of £19,308 from HMRC.
  • A further two returns were submitted by AFA for the Quarter ended 31 January 2013 and 31 January 2015 which showed an amount due to be paid of £561. Making a net repayment due from HMRC of £18,747.
  • Following an investigation by HMRC carried out in the period 30 June 2015 to 08 January 2016 it was discovered that input tax on personal expenses had been claimed and that company income paid into his personal bank account had not been disclosed. As a result HMRC overturned the returns listed above and on 09 September 2016 raised an officers assessment for those periods which totalled £65,356. He stated that he would provide HMRC with additional documentation to dispute the assessment but failed to do so and it therefore remained due for payment on 10 February 2017.
  • HMRC maintained that the under-declaration of VAT had been deliberate and/or had been to the personal benefit of himself and as a result raised a personal liability notice for penalties of £25,752 against him on 12 February 2018.
  • HMRC Ledgers show returns for the periods ended 30 April 2015 to 31 January 2016 were submitted to HMRC by AFA which declared a liability totalling £3,003.
  • He submitted 4 further repayment VAT returns for the quarters ended 30 April 2016 to 31 January 2017 which claimed a total of £4,298. HMRC overturned these claims on 26 October 2017 and established that £16,328 was due from AFA for those periods.
  • During a telephone call with HMRC on 10 August 2017 he stated that these latter returns should not have been repayment returns.
  • HMRC Ledgers show one payment of £298 made by AFA to settle the VAT liability for the quarter ended 30 April 2015. HMRC claimed in the liquidation for £108,464. 

    This information is correct as at 31 / 7 / 2019

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