Saturday, May 12, 2012

Mayor paying off thousands in outstanding income tax

BRADLEY Stoke Mayor Ben Walker, who is expected to become chairman of South Gloucestershire Council later this month, is currently paying off thousands of pounds of outstanding income tax for his building company which has gone bust.

Tory Councillor Walker, who steps down as mayor of the town on Wednesday still has £6,000 to pay to Revenue and Customs and hopes to finish paying the instalments next year.

His firm, Oppo Complete Building Services Ltd, of which he was one of two directors and which employed a total of four people including himself, nosedived at the beginning of the credit crunch in 2009 after a client failed to pay about £60,000 which was owing to the firm.

Mr Walker told the Post: "My construction company is not the only small business to have been a victim of the economic downturn during the last few years. I am making every effort to rectify this situation as quickly as possible, despite these tough economic conditions continuing. This has in no way ever affected my work as a councillor."

It is understood that before he applied for the company to be dissolved in March last year, he set up a new limited company called Oppo Holdings (South West) Ltd which is registered at his home address in Little Stoke.

In April last year, Mr Walker's application to dissolve the original company was halted after an objection by Revenue and Customs. If outstanding income tax is not paid off, it is normal practice for Revenue and Customs to start the liquidation process of a company which can lead, in some circumstances, to the conduct of directors being investigated by the Official Receiver.

But Mr Walker, who represents Bradley Stoke North on the district council, told the Post that Revenue and Customs was not taking any further action against him.

Nonetheless, an email has been sent by resident Julian Williams to South Gloucestershire Council's top lawyer, John McCormack, urging him to carry out a formal investigation into "worrying concerns" about Mr Walker.

The email, also sent to council leader John Calway and other councillors, alleges Mr Walker's stewardship of a limited company had been "drawn into question".

It says: "Failure to submit appropriate tax returns on time and failing in corporate governance may be considered questionable conduct for a senior Conservative councillor, particularly a councillor who is shortly to become chairman of South Gloucestershire Council on May 23."

Mr Walker first paid off money which was owed to sub-contractors before dealing with the outstanding income tax debt.

He said: "The business has never been officially wound-up due to the costs involved but the majority of its liabilities, such as to sub-contractors, have been repaid personally by the directors, including me."

A councillor can only be disqualified from office if they are declared as a personal bankrupt or if they commit a criminal offence which carries a prison sentence of more than three months. The council also has its own code of conduct and complaints about councillors are considered by the council's Standards Committee.

A council spokeswoman said: "The chair is an elected councillor and is subject to the same qualification conditions that apply to all local councillors as set out in Section 80 of the Local Government Act 1972. The decision to appoint the chair is made on an annual basis by full Council, which next meets on May 23."

Mayor paying off thousands in outstanding income tax

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