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Jeweller handed 11-year business ban after breaching court order and abusing tax system

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A jeweller from North West London has been given an 11-year directorship disqualification after breaching a court order and abusing the tax system.

Daniel Brodie from Temple Fortune in London has been handed a second ban from acting as a director in the promotion, formation or management of a company, starting on August 24, after failing to comply with tax obligations for a business for the second time.

Brodie first breached a court order that was given to him for not paying the correct amount of tax for Avya Gems Limited in 2012, for which he was director. Then in 2017, it was discovered that he had broken these terms with another company, Jewelmark UK.

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Jewelmark UK Limited was incorporated in June 2010 and traded as a watches and jewellery wholesaler, trading from premises in Temple Fortune, North-West London.

Daniel Brodie was first appointed a director of the company in June 2010 and resigned in July 2013, before being reappointed in September 2014.

The jewellery wholesaler, however, began to struggle and in June 2017, the company entered into creditors’ voluntary liquidation. This brought Jewelmark UK to the attention of the Insolvency Service.

Investigators uncovered Brodie failed to ensure Jewelmark UK complied with its statutory tax obligations and he had also breached a 2012 court order, which granted Brodie permission to act as a company director in lieu of a previous disqualification.

In January 2012, Brodie was banned for four years after he failed to ensure a separate company he was a director of – Avya Gems Limited – complied with its statutory tax and filing obligations.

While the correct amount of tax hadn’t been paid by Avya Gems, Brodie benefitted from dividends and operated a director’s loan account, which was overdrawn.

Brodie secured from the courts in February 2012 an order that allowed him to continue acting as a director of limited companies, which would have covered his directorship of Jewelmark UK.

The court granted this on the basis that Daniel Brodie complied with 21 conditions, but the jeweller failed to honour his commitments.

Daniel Brodie breached restrictions that he could not receive payments that exceeded £8,000 gross per month from the companies. He also failed to publish in Jewelmark UK’s accounts copies of the 2012 court order and the 4-year disqualification undertaking.

And similar to the misconduct displayed while he was director of Avya Gems, Daniel Brodie failed to ensure that Jewelmark UK complied with its statutory tax obligations, when he received more than £540,000 in director’s loan payments between September 2015 and June 2017.

At the point of liquidation, Jewlmark had outstanding tax liabilities of more than £210,000.

Lawrence Zussman, Deputy Head of Insolvent Investigations for the Insolvency Service, said: “The courts granted Daniel Brodie the ability to act as a company director despite a four-year ban. The jeweller, however, showed total disregard and blatantly breached the court’s conditions by committing similar instances of misconduct that led to his first ban.”

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Zoe Monk

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