MR MARTINS CIVZELIS

Disqualified from

2020-12-28

Date of birth on record

August 1994

1. From 25 October 2018 Martins Civzelis (“Mr Civzelis”) caused Omega to fraudulently evade VAT contrary to Section 72 of the VAT Act 1994 by charging VAT on sales whilst deregistered: • Omega was deregistered from VAT on 25 October 2018 as a missing trader • Omega continued to trade making sales totalling £198,366 and charging customers VAT • Omega failed to submit any VAT returns resulting in HMRC raising an assessment of £39,673 based on CIS returns submitted by Omega’s customers • No payments were made towards this liability. 2. After being appointed director on 6 April 2018, Martins Civzelis (“Mr Civzelis”) failed to ensure that Omega Construction Ltd (“Omega”) complied with its statutory obligations to submit all returns in a timely manner and remit all monies to HMRC in respect of VAT, CIS and PAYE/NIC. In addition, Mr Civzelis caused Omega to trade to the detriment of HMRC resulting in total liabilities of £1,702,753, in that: VAT • Omega was registered for VAT from 15/02/2016. HMRC were notified of the new director on a form dated 08/05/2018. • HMRC failed to submit VAT returns from quarters ending 30/06/2018 resulting in HMRC raising an assessment for quarter ending 30/06/2018 of £5,532 which Omega paid on 20/09/2018. • HMRC raised an assessment for quarter ending 30/09/2018 of £5,592 and further assessments for quarters ending 30/06/2018 and 30/09/2018 of £515,151 based on company records. • HMRC raised a final assessment for period 01/10/2018 to 25/10/2018 when Omega was de-registered from VAT of £40,662 based on company records. • Payment for quarter ending 30/06/2018 was due on 07/08/2018. • HMRC calculated a further VAT assessment of £39,673 for charging VAT whilst deregistered from 25/10/2018. • No payments were made towards these liabilities. • The outstanding VAT for quarters ending 30/06/2018 to 25/10/2018 is £561,405 and from 25/10/2018 is £39,673, totalling £601,078. CIS • Omega was registered under the Construction Industry Scheme (“CIS”) and submitted monthly CIS returns to declare tax deductions from payments to subcontractors. • Omega submitted CIS returns for tax year 2017/18 totalling £50,858 and made payments totalling £35,528. For the last month of tax year 2017/18 £15,330 remained outstanding. • On 08/03/2019 Omega submitted CIS returns for months 1 to 11 of tax year 2018/19 totalling £1,079,725 resulting in HMRC raising an assessment for month ending 05/04/2018 of £4,238, totalling £1,083,963. • No payments were made towards these liabilities. • The total outstanding CIS tax is £1,099,293. PAYE/NIC • For tax year 2017/18 Omega submitted RTI tax returns of £2,382 and made payments of £2,382. • Omega failed to submit any further returns resulting in HMRC raising estimates for tax year 2018/19 for RTI tax of £2,382. No payments were made towards this liability. Comparable treatment • Bank statements show during the period 6 April 2018 to 15 May 2019 £4,127,310 was paid out of the company bank accounts, of which at least £3,289,783 was paid to subcontractors and £27,991 was paid to HMRC. • At liquidation HMRC were the sole creditor owed £1,710,247.