MR NASHATAR SINGH BAINS

Disqualified from

2021-02-24

Date of birth on record

August 1967

Nashatar Singh Bains (“Mr Bains”) as the sole registered director of Square Developments Leicester Ltd (“SDLL”) caused a payment of £420,000 to be made to a connected company on 16 November 2018 at a time when he knew, or ought to have known, that a Value Added Tax (“VAT”) liability of at least £420,000 incurred following the sale of SDLL’s property had fallen overdue for payment to HM Revenue & Customs (“HMRC”) on 08 November 2018 thus rendering SDLL insolvent. The payment was to the detriment of HMRC, who were owed at least £635,462 at Liquidation. • On 24 August 2018, SDLL’s property was sold to an unconnected company for £2,520,000 including VAT of £420,000. From the proceeds of sale SDLL loaned £420,000 to a third party; • Once the sale had been completed SDLL had no other assets or source of income and after the VAT debt falling due on 8 November 2018, SDLL was insolvent. • On 08 November 2018, SDLL’s VAT return for the VAT quarter ended 09/18 fell overdue for submission and payment to HMRC. The VAT return was not submitted by SDLL to HMRC; • HMRC wrote to SDLL on 29 November 2018, advising HMRC had obtained a copy of SDLL’s invoice in respect of the sale of the property and the VAT on the invoice of £420,000 had not been declared by SDLL to HMRC. HMRC also stated that in the absence of a response by 12 December 2018 HMRC would issue an additional assessment for this amount and charge penalties; • On 03 December 2018, a solicitor acting on behalf of SDLL received £420,000 in respect of a loan advanced by SDLL to a third party; • On 07 December 2018 Mr Bains instructed the solicitor to transfer £420,000 to a connected company of which Mr Bains is the sole director and shareholder; • HMRC issued a Notice of VAT Assessment to SDLL on 11 April 2019 for £420,000. On 15 April 2019, issued a Statement of Account to SDLL for £428,775 (includes interest of £1,496) and stated it was due for immediate payment; • On 03 June 2019 HMRC issued a further demand letter to SDLL in respect of its VAT liabilities which stated that a winding up petition would be presented against SDLL if full payment was not made within 8 days; • On 13 August 2019 SDLL entered into Creditors’ Voluntary Liquidation. At the date of liquidation creditors were owed £637,862 of which HMRC was owed £635,462 (includes £420,000 VAT assessment and interest) in respect of VAT. • There are no assets shown on the Statement of Affairs submitted in the liquidation proceedings by Mr Bains and it is unknown why £420,000 of SDLL funds were paid to a connected company rather than to SDLL.