Council chief seeks to wind up company

Published: 7 Apr 2012 10:000 comments

LEADER of the Royal Borough, Councillor David Burbage, is in advanced discussions with the Inland Revenue as he tries to dissolve one of his companies.

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An investigation by The Observer found that Folderline Analysis Limited, in which Cllr Burbage holds a 90% controlling interest, last filed accounts in July 2009. These accounts show an outstanding tax bill of almost £20,000 - a figure he says is no longer owed.

Folderline Analysis was served a first notice that it would be struck off by Companies House on August 2 last year, but Inland Revenue appealed that notice in September. That appeal expired after six months and a second notice to strike off the company has been posted in the London Gazette.

Cllr Burbage, the TaxPayers' Alliance Pin-up of the Month for February, told The Observer he was "surprised" to see Inland Revenue appeal the decision.

He said: "I don't think there is a tax liability. But clearly if they don't subsequently object with the winding up then we are all square.

"I pay my taxes. I am not going to give the taxpayer the liability for my own taxes. The initial objection came as a surprise to me and I am continuing to talk to HMRC about winding up the company."

The Tory leader went on to say if there was any liability it was "nothing like" the £19,750 tax bill put to him by The Observer.

That figure, from the July 2009 accounts, is the combination of amounts due within

one year for 'other taxes and social security' and corporation tax. Folderline Analysis was set up when Cllr Burbage was working as a software consultant and he said it being struck off would have no impact on his other business, Blue Legend Software Limited.

Bob Gaiger, spokesman for HMRC, said: "Due to taxpayer confidentiality rules we are unable to discuss specific cases. Before any company is struck off the register, HMRC is informed by Companies House.

"All such cases are subjected to a risk analysis and HMRC does not allow the company to be struck off where we identify there will be a loss of tax."

The second striking off notice was served by Companies House on March 27 and if no objection is received within three months it will be dissolved.

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