The BBC reports that twelve companies related to Green Jellyfish, a firm raided by HMRC for tax fraud, are being liquidated. The director, Daniel Mark Robinson, is linked to these companies, most of which are based in Norwich. Employees report unpaid wages, and significant debts are owed to creditors. The situation raises concerns regarding corporate accountability amid an ongoing HMRC investigation.
The BBC reports that a dozen companies associated with a tax fraud raid firm are in the process of being liquidated. The companies share a common director, Daniel Mark Robinson, who was linked to Green Jellyfish, the firm targeted by HM Revenue and Customs (HMRC). During a raid in September, HMRC apprehended eleven individuals on accusations of tax relief fraud.
Most of the implicated companies operate from the Union Building in Norwich, including AS R&D Ltd, Aston Berry Ltd, Glide Business Solutions Ltd, and others. Apart from those, two additional companies are registered in Fen Ditton, Cambridgeshire, along with Toucan Blue Ltd located nearby. The majority of these firms are intertwined, with Robinson serving as the sole director and shareholder.
Green Jellyfish provided consultancy services for businesses seeking to claim research and development (R&D) tax relief but has since had its name changed to GJ2020 Ltd in 2023. Documents sourced from proposed liquidators, Quantuma, indicate that GJ2020 has entered administration, a process distinct from liquidation.
Paul Rosser, a Suffolk tax consultant, noted that the winding up of companies is typical; however, he expressed concern over the HMRC’s approach, suggesting that the enforcement of an insolvency practitioner would have better preserved potential evidence during the investigation.
Displaced employees of Impact Business Shared Services Ltd reported they were unpaid their final month’s salary, incurring losses in the thousands. Documents reveal unsecured claims totaling £156,700 and significant debts exceeding £2.9 million owed to creditors, primarily within the same group.
Both Green Jellyfish and Kirby and Haslam maintain that they are cooperating fully with HMRC. A spokesman from Green Jellyfish previously stated, “We understand that HMRC has a job to do, and we are fully cooperating and supporting them with the investigation, as we have nothing to hide.”
In summary, the liquidation of companies linked to Green Jellyfish follows a significant HMRC raid, with implications for numerous employees and potential financial repercussions among creditors. The unfolding situation highlights the ongoing scrutiny surrounding such businesses amid allegations of fraudulent tax practices.
The liquidation of twelve companies connected to Green Jellyfish underscores serious allegations of tax relief fraud, with significant repercussions for creditors and employees. While the HMRC investigation continues, statements from the firms assert their full cooperation. The situation also reflects broader concerns regarding corporate governance and compliance with tax regulations.
Original Source: www.bbc.com
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