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Restaurant boss banned for hiding takings to avoid tax

The boss of an Indian restaurant has been fined over £100,000 and banned for five years after he hid his business’s true takings to avoid paying the correct taxes.

Sadikur Rahman Chowdhury was the director of Simla Restaurant, incorporated in December 2002. The company traded as Simla Tandoori from premises in Blandford Forum, Dorset.

Simla Restaurant entered into liquidation in August 2019 which triggered an investigation by the Insolvency Service.

Investigators uncovered that the business traded without issue until June 2008 when it found Simla Restaurant had submitted inaccurate tax returns and owed over £48,000 in VAT and almost £113,000 in Corporation Tax from 2009 to 2017.

Sadikur had underdeclared sales to avoid paying the correct taxes and, at liquidation, owed the tax authorities more than £266,000.

Sadikur received a five year ban, preventing him from promoting, forming or managing a company. A penalty of over £104,000 was also levied by the tax authorities for the under declaration of corporation tax.

Lawrence Zussman, deputy director of Insolvent Investigations at the Insolvency Service, said: “Sadikur Rahman Chowdhury suppressed the takings of his restaurant for almost eight years so that he could avoid paying the correct taxes.

“This director’s actions meant the public purse was deprived of the funds he should have been paying whilst benefitting from years of good sales. The Insolvency Service will not tolerate behaviour such as demonstrated by Sadikur Chowdhury and we have removed him from the business environment for five years.”

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