A RESTAURANT owner employed an illegal worker and lied about profits to avoid paying tax.

Moulana Khan, director of Colne Valley Restaurant Limited, which traded as Colne Valley Indian Restaurant in Earls Colne, has been disqualified from acting as a company director for eight years.

This follows an investigation by the Insolvency Service after he was found to have employed an illegal worker, understated profits for tax purposes, and failed in his duty to ensure the company either maintained or preserved adequate accounting records.

Robert Clarke, head of insolvent investigations north at the Insolvency Service, said: "The Insolvency Service rigorously pursues directors who fail to deal properly with a company’s taxation affairs and to pay fines imposed for breaking employment and immigration laws.

"We have worked closely in this case with our colleagues at HMRC and the Home Office to achieve this disqualification.

"The director sought unfair advantages over his competitors by failing to ensure that profits were properly recorded and by employing individuals who did not have the right to work in the UK, in breach of his duties as a director.

"The public has a right to expect that those who break the law will face the consequences. Running a limited company means you have statutory protections as well as obligations.

"If you fail to comply with your obligations, then the Insolvency Service will investigate you."

Prior to the company's closure in February 2014, officers from HM Revenue & Customs (HMRC) had visited the premises and discovered that some of the restaurant takings wee excluded from its records.

Officers from the Home Office visited the restaurant premises on October 4, 2013 when the company was found to be employing an illegal worker. Mr Khan was as a result served with a Notification of Liability for a Civil Penalty of £5,000.

The fine was not paid and Mr Khan took steps to place the company into Creditors Voluntary Liquidation, which took place on May 19, 2015.

Mr Khan’s disqualification from April 11 means he cannot promote, manage or be a director of a limited company until 2025.