Nazim Osman, who operated Barking-based Cube Cash & Carry Limited, has been disqualified from being a director for seven years for failing to pay tax and not keeping proper accounts.
Cube Cash & Carry traded mainly in beers, wines and spirits. It was wound-up by the High Court on 3 December 2008 owing creditors at least £3,188,023, following a petition by HM Revenue & Customs (HMRC).
As a result of lack of accounting records, neither the Official Receiver nor the company liquidator were able to establish the reasons behind several transactions, including six withdrawals totalling £83,000, from the company's bank account between 11 December 2007 and 18 March 2008.
Other unexplained transactions included at least £200,000 paid to the company's general manager between 21 August 2007 and 21 December 2007 and payments totalling at least £82,000 made to a third party between 19 July 2007 and 23 October 2007.
The lack of accounts meant investigators could not establish how much the company owed to HMRC in PAYE, national insurance, corporation tax and VAT. The investigation found that trading was not properly declared to HMRC in VAT returns.
Between 6 July 2007 and 6 April 2008, the company made payments of £8,828,212 from its bank account but only £17,913 was paid to HMRC, which was owed around £2,923,838 in VAT for that period.
Osman, 54, gave an undertaking not to act as a director of a limited company until 17 October 2019.
By Martin Regan