5 year ban for Merseyside takeaway owner who under-declared VAT

Ricky Yan Kay Sum, director of a Chinese takeaway restaurant in Rainhill, has been disqualified for five years for under-declaring cash sales and VAT

Ricky Yan Kay Sum, director of Yat Yeen Limited, which traded under the name of Chung Ku, also failed to pay the under-declared VAT.

Sum has given an undertaking to the Secretary of State for Business, Energy & Industrial Strategy, which prevents him from becoming directly or indirectly involved in the promotion, formation or management of a company for five years from 27 June 2017.

The business went into liquidation on 22 July 2015 owing £50,606 to its creditors. The Insolvency Service’s investigation concluded Sum had under-declared the takeaway’s sales and VAT to HM Revenue & Customs (HMRC), and failed to pay HMRC the VAT which was properly due and payable.

Commenting on the disqualification, Robert Clarke, Chief Investigator at the Insolvency Service, said:

Under-declaration of sales deprives the exchequer of vital funds for public services. In co-operation with HMRC, the Insolvency Service will not hesitate to investigate such misconduct with disqualification as a director the probable consequence.

Notes to editors

Yat Yeen Limited (CRO No.07239896) was incorporated on 30 April 2010. Yat Yeen traded from 564 Warrington Road, Rainhill L35 4LZ, with its registered office being at Hanover House, Hanover Street, Liverpool L1 3DZ.

Ricky Yan Kay Sum (born February 1976) was the sole formally appointed director between 30 April 2010 and liquidation.

Yat Yeen went into Liquidation on 22 July 2015. On 6 June 2017 the Secretary of State accepted a Disqualification Undertaking from Sum effective from 27 June 2017, for five years.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

  • act as a director of a company
  • take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
  • be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings.

Persons subject to a disqualification order are bound by a range of other restrictions (https://www.gov.uk/government/publications/corporate-insolvency-effect-o...).

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

The agency also authorises and regulates the insolvency profession, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.

Further information about the work of the Insolvency Service, and how to complain about financial misconduct, is available (https://www.gov.uk/government/organisations/insolvency-service).