Case details for Nizam Ali

Name: Nizam Ali

Name: Aromatica Restaurant Limited

Date of Birth: 7 / 9 / 1964

Date Order Starts: 19 / 3 / 2019

Disqualification Length: 8 Years 96 Month(s)

CRO Number: INV5066179

Last Known Address: 2 The Pines, , , , Woking, GU21 4EW

Conduct: Between December 2012 and April 2016 Nizam Ali (“Mr Ali) caused Aromatica Restaurant Limited (“the company”) to suppress sales figures which resulted in the company under-declaring and underpaying VAT and Corporation Tax to HM Revenue and Customs (“HMRC”), in that:

  • HMRC received Merchant Acquirer data for the period from the quarter ended January 2012 to the quarter ended April 2016 which showed that Aromatica had card sales (inclusive of VAT) totalling £2,016,097 for that period.
  • Aromatica submitted VAT returns for the same period that showed total receipts of £1,913,333 (inclusive of VAT) and so the company’s declared turnover (including cash sales) was £102,764 less than card sales alone shown in the Merchant Acquirer data.
  • In the absence of company records HMRC estimated that 26.5% of the company’s sales were cash based on two test purchase exercises conducted on 23 June 2016 and 25 August 2016, giving an estimated total sales figure for the quarter ended January 2012 to the quarter ended April 2016 of £2,742,982 (inclusive of VAT), resulting in an under-declaration of Aromatica’s sales figures of £829,649.
  • HMRC raised VAT assessments for the period indicating that an additional £138,275 was due in respect of VAT in relation to the suppressed sales.
  • In addition HMRC used their estimated sales figures to recalculate the CT liabilities and the amount of tax due under s455 of the Corporation Tax Act 2010 for the years ending 30 April 2012 to 30 April 2015. HMRC calculated that the company owed an additional £113,242 in respect of CT and £140,739 in respect of s455 tax.
  • HMRC determined that the under-declaration of sales in the VAT returns for the VAT periods from December 2011 to March 2016 and in the CT returns for the years ending 30 April 2012 to 30 April 2015 was deliberate and applied a penalty of £199,026.
  • HMRC’s total claim at the date of liquidation is £591,282 out of total liabilities of £624,947.
  • Mr Ali has submitted revised calculations to HMRC for the period from the quarter ending January 2012 to the quarter ending April 2016 which reduces the additional VAT liabilities to £51,783, the additional CT liabilities to £53,776 and the s455 tax liabilities to £52,577, a total of £158,136 (excluding penalties). HMRC has not accepted Mr Ali’s revised estimates.
  • No payments have been made by the company in respect of the additional tax liabilities. 

    This information is correct as at 26 / 2 / 2019


    Name: Guler Cakar

    Name: Aromatica Restaurant Limited

    Date of Birth: 6 / 10 / 1980

    Date Order Starts: 19 / 3 / 2019

    Disqualification Length: 4 Years 48 Month(s)

    CRO Number: INV5066179

    Last Known Address: 96a Westfield Road, , , , Woking, GU22 9QP

    Conduct: Between December 2012 and September 2015 Guler Cakar (“Mrs Cakar”) allowed Aromatica Restaurant Limited (“”Aromatica”) to suppress sales figures which resulted in the company under-declaring and underpaying VAT and Corporation Tax to HM Revenue and Customs (“HMRC”), in that:

  • HMRC received Merchant Acquirer data for the period from the quarter ended January 2012 to the quarter ended July 2015 which showed that Aromatica had card sales (inclusive of VAT) totalling £1,628,872 for that period.
  • Aromatica submitted VAT returns for the same period that showed total receipts of £1,529,803 (inclusive of VAT) and so the company’s declared turnover (including cash sales) was £99,069 less than card sales alone shown in the Merchant Acquirer data.
  • In the absence of company records HMRC estimated that 26.5% of the company’s sales were cash based on two test purchase exercises conducted on 23 June 2016 and 25 August 2016, giving an estimated total sales figure for the quarter ended January 2012 to the quarter ended July 2015 of £2,216,146 (inclusive of VAT), resulting in an under-declaration of Aromatica’s sales figures of £686,343.
  • HMRC raised VAT assessments for the period indicating that an additional £114,390 was due in respect of VAT in relation to the suppressed sales.
  • In addition HMRC used their estimated sales figures to recalculate the CT liabilities and the amount of tax due under s455 of the Corporation Tax Act 2010 for the years ending 30 April 2012 to 30 April 2014. HMRC calculated that the company owed an additional £77,893 in respect of CT and £96,799 in respect of s455 tax.
  • HMRC determined that the under-declaration of sales in the VAT returns for the VAT periods from December 2011 to July 2015 and in the CT returns for the years ending 30 April 2012 to 30 April 2014 was deliberate and applied penalties of £146,665.
  • HMRC’s total claim in respect of liabilities up to September 2015 was £435,747.
  • Mr Ali has submitted revised calculations to HMRC for the period from the quarter ending January 2012 to the quarter ending July 2015 which reduces the additional VAT liabilities to £44,511, the additional CT liabilities to £35,465 and the s455 tax liabilities to £35,000, a total of £114,976 (excluding penalties). HMRC has not accepted Mr Ali’s revised estimates.
  • No payments have been made by the company in respect of the additional tax liabilities. 

    This information is correct as at 19 / 3 / 2019



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