Electrical boss barred over £1m mystery expenses

Grant Prior 2 weeks ago
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The boss of an electrical contracting company has been banned from running a business for seven years after failing to explain whether nearly £1m in expenses taken out of company accounts were legitimate.

GJES London Ltd was incorporated in October 2011 and Grzegorz Marcin Jarnot,47, from Surrey was the sole director.

The company traded for over seven years until GJES London went into Creditors voluntary liquidation in April 2019 as it was unable to pay its debts.

GJES London’s insolvency triggered an investigation by the Insolvency Service into Jarnot’s conduct as a director.

Investigators found that from November 2017 to April 2019 more than £952,000 had been paid into GJES London’s bank account, with almost £958,000 paid out.

Jarnot failed to provide any accounting records to prove whether the bank deposits accounted for all GJES London’s income and whether the payments made out were legitimate expenditure.

Further enquiries found that GJES London was trading to the detriment of the tax authorities, having failed to pay all its VAT, PAYE and National Insurance and corporation tax from 2016 to 2019.

Investigators established that 18 months before GJES London became insolvent, the company’s accounts declared that GJES London owed the tax authorities £39,500.

But £810,000 was paid out from GJES London’s company bank account in the last 15 months and no tax was paid. The tax authorities have claimed more than £255,000 in the liquidation.

Lawrence Zussman, Deputy Director of Insolvent Investigations, said: “Grzegorz Jarnot’s conduct as a director was unacceptable.

“Records show that close to £1 million was deposited into and paid out from the company bank account. But Grzegorz Jarnot failed to explain the source of the funds, who payments were made to and whether it was legitimate business spending. He also failed to ensure the company paid its tax obligations.

“Maintaining and keeping company records is a statutory requirement for all directors and Grzegorz Jarnot’s seven-year ban means he has been removed from the business environment for a substantial amount of time.”

 

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