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Firm chief banned after investigation
Myerscough College rural business unit
Boss ‘made mystery payments from account’
A PRESTON accountant who failed to submit tax returns to the Government and made more than £76,000 of unexplained payments from a company bank account has been banned from acting as a company director for seven years.
Gary Cottam, 51, was the sole director of Gary Cottam Associates Ltd, a Bilsborrow-based company which was set up in 2003.
The firm, based at Myerscough College Business Unit, in Bilsborrow, was put into administration on January 28 last year with an estimated debt to creditors of more than £94,000.
He has now been banned from acting as a company director following a probe by the Insolvancy Service’s investigation team, based in Manchester.
According to the service, Mr Cottam did not dispute that he “failed to maintain or preserve adequate accounting records” which outlined why payments were made from the company bank account to various unknown recipients, including banks and credit cards.
Investigators found evidence of unexplained payments totalling £76,191.
He also made personal payments, including to a private school.
In addition, he did not dispute that he cause the company to fail to submit returns and payments on time.
He did not submit VAT returns from January 2006 or PAYE and National Insurance contributions from May 19, 2008 until the time the firm was wound up last year. And he did not dispute that between December 2009 and January 2011 he paid himself £78,495 while failing to make full payment to HMRC, investigators said.
The ban takes effect from September 14 this year.
Commenting on the disqualification, Claire Entwistle, director of company investigations North at the Insolvency Service, said: “Professionals who abuse the privilege of limited liability, especially to their own benefit, will be pursued rigorously by The Insolvency Service.
“This undertaking prevents him carrying on any business except at his own risk.”
Disqualification undertakings were introduced in April 2001. They are the equivalent of a disqualification order but do not involve court proceedings.
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Sunday 19 May 2013
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