Takeaway owner's shock at £64,000 fine for failing to pay his VAT bill

7:43am Saturday 17th May 2008

A PIZZA takeaway owner fined £64,000 by magistrates for 32 counts of failing to pay VAT has described his disbelief at how much he has to pay.

Gurminder Singh Lola, 44, owner of Perfect Pizza, St John's, Worcester, was given the fine by the Worcester magistrates after Her Majesty's Revenue and Customs (HMRC) brought the case.

He admitted all the charges at a previous hearing on March 26, which was adjourned to allow him time to produce his companies' accounts for magistrates.

Speaking to Your Worcester News following the trial, he said: "I have been honest with them, I held my hands up but I wasn't expecting fines of that much. We have bent over backwards to help but that is out of order."

In court, Michelle Heeley, prosecuting for HMRC, said firms supplying goods and services over a certain value were liable to pay VAT.

She said Singh Lola, of St John's, had run up VAT debts personally and for both his companies, Perfect Pizza, and Nirvana Enterprises - Laugherne Road Stores, Worcester.

As a result, revenue and customs officers posted "notices of requirement" at both premises and at Singh Lola's home, also St John's, on May 17, last year.

The notices meant legally Singh Lola had to cease trading until HMRC received securities payments totalling £38,100.

But he continued doing business both personally and through his companies, between August 6 and 19, clocking up 32 counts of failing to pay VAT to the tune of £16,400.

Miss Heeley, who described Singh Lola as "a man of previously good character", added there were now overall remaining VAT debts of £50,500, the majority owed through the pizza firm.

Geraldine Meers, chairman of the bench, said: "We have taken into account your early guilty pleas in this matter but have found quite a large extent of non-cooperation.

She said Singh Lola had not helped his case by "making excuses" in failing to provide accounts for Nirvana Enterprises despite having seven weeks to do so.

He was fined £2,000 for each offence and ordered to pay £200 costs.

When asked how he intended to settle the fine, Singh Lola said: "My house is on sale and until it sells I cannot pay."

Mr Singh Lola said both of his businesses were trading as usual.

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