Leeds Indian restaurant Mumtaz ordered to pay more than £40,000 after tax offence

Mumtaz Leeds Ltd has been fined for not paying a security bond to HM Revenue and Customs.
Mumtaz Leeds Ltd has been fined for not paying a security bond to HM Revenue and Customs.

An Indian restaurant in Leeds has been handed a second fine for not paying a security bond to HM Revenue and Customs.

Mumtaz Leeds Ltd, which is registered to Chadwick Street, had been told to pay a £62,197.43 security bond to HMRC to safeguard payment of VAT.

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The company failed to do so and was fined £6,000 in February last year for supplying of goods and services without giving a security when required.

HMRC today said that the security deposit remains unpaid and the company has been fined again as a result.

The company was ordered to pay another £4,500 at Leeds Magistrates’ Court on January 30 and must also pay £37,733 compensation for unpaid VAT.

Company director Sameea Nawaz, 38, and general manager Rabnawaz Akbar, 47, both of Grey Court Close, Bradford, admitted trading without paying the bonds and were fined a total of £3,000.

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An HMRC spokesman said: “Nawaz and Akbar chose to ignore previous warnings and continued to break the law, and now they are paying the price.

“HMRC can require businesses with a history of ignoring their tax obligations to pay a bond to protect future tax revenue. It is only right that we tackle those businesses who fail to play by the rules by taking such action.”

The tax authority has the power to ask for a cash deposit or bond when there is a risk tax will not be paid on time.

The funds taken as security can then be kept if the tax is not paid.

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