The directors of Manchester-based Rice Flame Bar & Grill Ltd, whose customers included footballers allegedly spending thousands of pounds a night, have been disqualified for periods of up to 12 years for failing to pay tax on some £700,000 of hidden sales
The company operated Asian, Chinese and Thai restaurants from various locations in Manchester, including the Rice Decadence lounge, a favourite with footballers. It was placed into liquidation in November 2013, with an estimated deficiency to creditors of £694,863.
Following an investigation by the Insolvency Service, the two main directors have admitted using illegal till codes and other methods to supress cash sales from being notified to HMRC, and employing illegal workers.
One of them, Manoj Verma, admitted to HMRC that he had taken over £700,000 from the company by these actions and is now being forced to repay the tax due on this cash by HMRC. While not formally appointed a director Manoj Verma has admitted he was in control of Rice Flame throughout its trading period and although his mother and brother were nominally directors they had no role or knowledge of the company.
He has been disqualified until December 2028, while a second director, Madoka Suzuki, has been banned from managing or in any way controlling a company or being a director until November 2025.
Amit Verma and Usha Verma, Manoj Verma’s brother and mother, have also both been disqualified until May 2019. They were directors of Rice Flame between August 2007 and February 2011, while Suzuki was an appointed director between February 2011 and liquidation. Manoj Verma was a director between April 2013 and November 2013.
Manoj Verma and Suzuki did not dispute that they caused Rice Flame to suppress its cash sales by deleting cash sales totalling at least £771,460 from its records, and to fail to declare those sales to HMRC. Amit and Usha Verma did not dispute that they abrogated their duties as directors of Rice Flame, in that they took no part in the management of the company, thus allowing Rice Flame to suppress its cash sales between January 2008 and January 2011 by deleting certain cash sales from its records, and to employ illegal workers.
Rob Clarke, group leader director of Insolvent Investigations North, said: ‘This deliberate deception on the tax man is totally unacceptable, coupled with the large scale employment of illegal workers it demonstrates a wholesale disregard for the law and a total lack of business ethics.’
