A payroll services director has been handed an 11-year ban by the High Court for orchestrating a multi-million-pound tax avoidance scheme.
Scott Ian Rooney, 40, of Leicester, who was the sole director of Magnetic Push Ltd, also failed to justify £37m expenditure in 11 months.
Previously known as The Knowledgeshares Ltd and My PSU Subcontractors Ltd, the company provided payroll services from a services office based in Liverpool.
Magnetic Push, which Rooney had been sole director of since February 2017, operated for just 11 months before going into liquidation and was voluntarily wound up.
The company’s liquidator then reported to the Insolvency Service that Rooney had refused to hand over the company’s books and records. This, coupled with additional information from the tax authorities, triggered an investigation.
It is reported that Rooney declared a VAT liability of £609, while the tax authorities claimed more than £4m from the company in the liquidation.
PAYE and National Insurance contributions were also not declared.
Judge Jones increased Rooney’s ban to 11 years after he ruled a longer ban was appropriate due to the seriousness of failing to keep records in the context of the large sums the company dealt with, almost £37m in 11 months, coupled with the director’s lack of co-operation.
The ban, which means he cannot director or indirectly become involved with the promotion, formation or management of a company without prior court permission, started on March 22 2021.