Scottish Doosan broker Balgownie Restricted went into management remaining yr owing greater than £3m, in a while after converting its title to FB Realisations Restricted.
The autumn of Balgownie/FB Realisations adopted revelations that finance director David Smith have been filing false VAT returns on behalf of the corporate for a number of years with out the data of his fellow administrators.
David Smith, elderly 61, of Kirkton of Bourtie, Inverurie, Aberdeenshire, has now been disqualified as an organization director for 11 years following investigations by way of the Insolvency Provider.
Mike Smith, leader investigator on the Insolvency Provider, mentioned: “David Smith’s habits falls smartly beneath the criteria we predict of corporate administrators. Smith’s misconduct was once hidden from his different administrators and handiest got here to gentle when a expert queried funds at a board assembly and he admitted that he have been manipulating the accounts for a number of years.
“Through intentionally suppressing VAT bills, Smith disadvantaged the general public handbag of important price range that are supposed to have long past against crucial public services and products comparable to faculties and the NHS.”
Balgownie Restricted was once arrange on Firms Area in 1973 however had a buying and selling historical past relationship again to 1907.
The undeclared VAT totalling £1,575,584 consisted of:
- falsely claiming VAT refunds on bills that have been in truth for personal or non-public use relatively than respectable industry functions within the quarter finishing December 2018
- intentionally understating the quantity of tax due on gross sales made between March 2019 and March 2022, throughout more than one quarterly returns
- falsely claiming refunds by way of backdating purchases to previous tax sessions with no need legitimate invoices or proof to toughen those claims
Smith signed a disclosure with HMRC in March 2023 the place he admitted intentionally under-declaring the quantity of VAT his corporate must have paid.
Balgownie Restricted went into management in March 2024, with 24 other people shedding their jobs and collectors owed £3,163,795.
On the other hand, 15 jobs have been stored when the industry and its property have been purchased out of management by way of MacGregor Business Provides the next month.
The secretary of state for industry and industry authorized a disqualification endeavor from Smith, and his ban began on 21st July 2025. It prevents him from being concerned within the promotion, formation or control of an organization, with out the permission of the courtroom.
Smith was once declared bankrupt in August 2024 following a petition from probably the most corporate’s collectors.
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