Clear involved in £12m VAT wrangle

MANCHESTER fuel dealer, Clear, is involved in a legal battle with HM Revenue & Customs over a £12m VAT rebate.

Clear, based in south Manchester, is owned by Imran Kara who has appeared in the Sunday Times Young Rich List.

In recently-filed accounts covering the 18 months to September 30 auditors warn the non-settlement of the claim could threaten the company’s future.

“The non-settlement of this debt could have a serious impact on the company’s ability to operate as a going concern,” said auditors from the Preston accountancy firm Alpha

But in their report the directors insist the firm will have enough resources to continue trading depsite the litigation.

According to a note in the accounts Mr Kara has injected extra cash into the business and is prepared to add further capital.

The wrangle has come at a time of plunging sales for the business, which is described as a commodity trader in its accounts. During the 18-month period sales dropped sharply to £27.3m from  £78.7m in the year to April 2008. Pre-tax profits fell to £4,419 from £342,992 in the previous accounting period.

Mr Kara could not be reached for comment.