Charity shop re-seller banned for under-declaring taxes due

Rajesh Voralia (49), from Kingston Upon Thames in Surrey, will start his directorship disqualification on 24 November 2020.

The charity shop re-seller is banned from acting as a director or directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.

RTS Textile Recyclers Limited was incorporated in September 2014 and Rajesh Voralia was appointed as the sole director.

The business bought and sold unwanted items collected from charity shops and operated out of premises in West Drayton, West London.

RTS Textile Recyclers went into administration in October 2017 and a year later went into liquidation before an Insolvency Service investigation uncovered that Rajesh Voralia failed to ensure RTS Textile Recyclers complied with its tax obligations.

Enquiries revealed that VAT returns due from the end of 2014 to the middle of 2017 were either submitted late or not at all and when RTS Textile Recyclers entered into administration, almost £1.2million in unpaid taxes, including penalties, was owed by the company.

Analysis by the Insolvency Service found that more than £16.4million had passed through RTS Textile Recyclers’ bank account between March 2015 and December 2017 but less than £80,000 was paid to the tax authorities.

On 3 November 2020, Judge Prentis sitting in the High Court made a disqualification order for 6 years against Rajesh Voralia, as well as costs of almost £5,000.

Rajesh Voralia attended the hearing, where he did not dispute that he had failed to ensure RTS Textile Recyclers complied with its statutory tax obligations.

Lawrence Zussman, Deputy Head of Insolvent Investigations for the Insolvency Service, said:

Rajesh Voralia failed to take his responsibilities as a director seriously and thought he could walk away from his company and its outstanding tax liabilities without consequences.

Thanks to our investigation, he has now been removed from the business environment for a substantial period. This ban should serve as a warning to other directors that if you do not pay correct taxes and comply with the law, you run the risk of being disqualified.

Notes

Rajesh Voralia is from Kingston Upon Thames and his date of birth is March 1971.

RTS Textile Recyclers Limited (Company Reg no. 09206816).

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 restrictions.

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