Bankruptcy extended for Derby man linked to £45m VAT fraud

A bankrupt, who was a senior employee of a company which carried out a tax fraud, has been hit with an extended bankruptcy restriction, for his part in the scheme.

Navdip Singh Talwar aged 32, a bankrupt from Derby, was a senior employee of a company which carried out a huge tax fraud.

In 2012, seven men involved in VAT fraud estimated at £45m were given jail sentences ranging from ten to 15 years.

A six-year investigation by HMRC had found that the men, along with their friends, fraudulently operated six companies, buying and selling mobile phones and CD ROMs.

Navdip Singh Talwar, who was a senior employee of the company, but not a director, had a duty to exercise reasonable skill and care in the performance of his duties.

However, the trial heard, he knowingly assisted the director of the company to engage in tax fraud.

As a result of his dishonest assistance and following legal action by the liquidator, Talwar consented to pay £23m.

Being unable to repay the £23m, he petitioned for his own bankruptcy in June 2017.

Following his bankruptcy, Talwar’s conduct was looked into by a specialist team of investigators of the Insolvency Service.

If the Official Receiver considers that the conduct of a bankrupt has been dishonest or blameworthy in some other way, those facts can be reported to court, with a request for a Bankruptcy Restrictions Order (BRO) to be made. The court will consider this report and any other evidence and decide whether to make a BRO. If it does, the bankrupt will be subject to certain restrictions for a period between 2 to 15 years. The bankrupt may instead agree to a Bankruptcy Restrictions Undertaking (BRU) which has the same effect as an order, but will mean that the matter does not go to court.

On 17 May 2018, the Secretary of State accepted a BRU from Navdip Singh Talwar after he admitted to providing dishonest assistance to a company engaged in tax fraud.

His ban is effective from 17 May 2018 and lasts for 11 years.

Ken Beasley, the Official Receiver of Public Interest Unit (North), part of the Insolvency Service, said: “The Insolvency Service will take firm action when we find fraud in the market place.

“Due to his actions, Mr Talwar was found liable for £23m and the consequence of his activities should serve as a lesson and deter others from acting in the same way.

“The protection of limited liability is at risk when individuals participate in fraud or attempt to remove themselves from the firing line by not registering as a company director and action will be taken against them, whether they are a company director or an employee.”