The Insolvency Service has recently reported that Mr Chin Seong Lam, a restaurateur and company director (‘Mr Lam’), has been banned from being involved in the running of any company for twelve years after admitting to the fraudulent evasion of payment of VAT.

Timothy Thompson of Kangs Solicitors reports upon the circumstances.

The Criminal Proceedings | Kangs Financial Crime Defence Solicitors

  • Mr Lam owned outlets at the O2 Arena and at Gun Wharf Quays Shopping Centre in Portsmouth.
  • An investigation by HMRC into the affairs of Mr Lam and his businesses revealed that he had failed to declare substantial cash payments which he pocketed for personal use.   
  • In 2018, Mr Lam admitted two counts of being knowingly concerned in the fraudulent evasion of VAT and was sentenced to three years imprisonment.

The Insolvency Proceedings | Kangs Insolvency Solicitors

  • Following the HMRC criminal investigation which uncovered the fraud, Mr Lam liquidated his companies in 2016 / 2017 which resulted in a tax liability of approximately one million pounds, representing tax liabilities accruing over a period of four and a half years.    
  • Proceedings involving the Insolvency Service and HMRC to disqualify Mr Lam from being a director of a Company resulted in an Undertaking being given by him accepting his disqualification for a period of twelve years.

Insolvency Service Comment | Kangs Director Disqualification Solicitors

David Brooks, Chief Investigator for the Insolvency Service, said:

“Lam Chin Seong demonstrated a wilful disregard for the tax authorities and a 12-year ban prevents him from using limited liability to carry on his business practice in such a way.”

“This case illustrates the excellent day-to-day relationship the Insolvency Service has with HMRC, and we will continue to work with our partners to prevent misconduct.”

How Can We Assist? | Kangs Tax & VAT Fraud Offences Defence Solicitors

The team at Kangs Solicitors advises clients on both HMRC civil and criminal tax issues and Director Disqualification proceedings on a daily basis.

We regularly assist companies and their directors who breach the strict requirements of company legislation, and providing guidance and support.

Please feel free to contact our team through any of our solicitors named below who will be happy to provide you with some initial advice and assistance.

Hamraj Kang
hkang@kangssolicitors.co.uk
07976 258171 | 020 7936 6396 | 0121 449 9888

John Veale
jveale@kangssolicitors.co.uk
0121 449 9888 | 020 7936 6396

Tim Thompson
tthompson@kangssolicitors.co.uk
020 7936 6396 | 0121 449 9888