The Courier & Advertiser (Fife Edition)
Property developers disqualified after tax on land deal unpaid
A pair of Fife property developers have been disqualified after failing to pay tax on a land deal.
Richard Black, from Collessie and William Edmiston, from Kirkcaldy, have been banned for a total of 13 years.
The pair are now forbidden from acting as director or becoming involved, directly or indirectly, without the permission of the court, in the promotion, formation or management of a company.
Mellerstain Developments was incorporated in April 2002 and the company developed building projects in central Scotland.
The company entered into liquidation in August 2018, which brought Mellerstain Developments to the attention of the Insolvency Service.
Investigators found that in June 2016, Mellerstain Developments sold land to two of the company’s directors, Richard Black, 54, and William Edmiston, 55.
The land was the last asset that the company owned and when it was sold the company owed the tax authorities more than £31,000, having agreed to settle the debt before November 2020.
Mellerstain Developments, however, paid just over £24,000 to Mr Edmiston from the proceeds of the land sale and just under £11,000 was paid in cash to an undisclosed party, while nothing was paid to the tax authorities to settle the outstanding liabilities.
On July 8, the Secretary of State accepted disqualification undertakings from Mr Black and Mr Edmiston after the property developers did not dispute acting to the detriment of the tax authorities.
Mr Black is banned for six years, while Mr Edmiston is banned for seven years.
Rob Clarke, chief investigator for the Insolvency Service, said: “Directors have a duty to ensure the correct amount of tax is paid but Richard Black and William Edmiston clearly thought the rules didn’t apply to them.
“Thankfully their activities were brought to the attention of the Insolvency Service. Their bans should serve as a stark warning to other directors there are severe consequences if you put your interests ahead of your creditors.”