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10 September 2011

Tax blow for bankrupt owners

 

The tax office is taking a tougher line on business owners who fail to pay their taxes before going bankrupt, figures suggest.

 

Bankruptcy restriction orders obtained against owners due to neglect of their businesses increased by 21 per cent to 443 last year – and most were said to have consistently failed to pay taxes.

 

Bankruptcy protection orders limit individuals’ access to credit and can prevent them from becoming a company director for up to 15 years.

 

Edward starling, head of business recoveries at law firm Wedlake Bell, said the figures showed that the authorities were making an example of some business owners – and too many of those were deluding themselves that everything would be all right.

 

 

Source: FT 10.09.2011

 

*Article for guidance only. Professional advice should be obtained to ensure that all circumstances are assessed in providing a complete answer.