Director Disqualification:
Promoting Tax Avoidance
There are two potential avenues for disqualification in this area:
(1) If the Company has been petitioned for winding up by an officer of HMRC, then a disqualification application may be made by an officer of Revenue and Customs. As usual, the primary consideration is whether the relevant disqualification is in the public interest. There is a minimum disqualification period of 2 years and a maximum disqualification period of 15 years.
(2) If the court determines that a person’s conduct in relation to a company makes them unfit to be concerned in the management of a company, then an officer of Revenue and Customs may make a disqualification application. There is no minimum period of disqualification here, but there is a maximum of 15 years. This captures circumstances where HMRC has not petitioned for the winding up of a company, but a disqualification is still prudent.
As this is a relatively new area of disqualification that allows for HMRC to petition for your disqualification directly, it may not be something directors are aware of. Our team can assist you with dealing with any investigations and rebutting enquiries accordingly.
Section 8ZF & 8ZG of the Company Directors Disqualification Act 1986:
