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Directors behind tax avoidance scheme banned

Two people behind a firm marketing a tax avoidance scheme have been banned from acting as directors.

Timothy Richard Edmunds and Annette Edmunds were directors of ESP Strategies Ltd. An Insolvency Service investigation found that, before the firm fell into liquidation, it had moved assets out of the reach of creditors by using a tax avoidance scheme.

ESP Strategies issued nearly a quarter of a million pounds’ worth of shares, but these were not fully paid for.

When the pair agreed the surrender of the shares, £230,400 of uncalled share capital became available, but they already knew that HM Revenue and Customs was owed £133,245 as the sole creditor in liquidation.

Timothy Edmunds was disqualified for five years, and Annette Edmunds for four.

Insolvency Service chief investigator Sue MacLeod says: “If your business engages in transactions in the run up to liquidation which are detrimental to any of its creditors, the Insolvency Service may investigate you, leading to your removal from the business environment.”

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