Ten-year ban for director who promoted tax avoidance scheme costing HMRC more than £2.5m
A company director who promoted a tax avoidance scheme that cost HM Revenue and Customs (HMRC) more than £2.5 million has been banned from acting as a director for 10 years.
Geoffrey Mackie promoted the scheme, which involved artificial losses being created to reduce tax liabilities. HMRC successfully challenged the scheme in court, and Mackie was subsequently investigated by the Insolvency Service.
The investigation found that Mackie had been knowingly concerned in the fraudulent trading of the company that promoted the scheme. He was also found to have failed to take reasonable steps to prevent the company from trading while insolvent.
As a result of the investigation, Mackie has been disqualified from acting as a director for 10 years. He has also been ordered to pay costs of £35,000.
Commenting on the case, Tony Wright, Head of Insolvent Investigations at the Insolvency Service, said:
“Geoffrey Mackie knowingly promoted a tax avoidance scheme that was designed to deprive the taxpayer of millions of pounds. His actions were dishonest and fraudulent, and he has rightly been banned from acting as a director for 10 years.
“This case should serve as a warning to others who may be tempted to engage in tax avoidance schemes. The Insolvency Service will not hesitate to investigate and take action against those who do so.”
If you are concerned about the activities of a company, you can report them to the Insolvency Service online at www.gov.uk/report-suspected-insolvency-offence.
Notes to editors:
- Geoffrey Mackie was a director of Pro-activ2 Ltd, which promoted the tax avoidance scheme.
- The scheme involved artificial losses being created through the sale and repurchase of shares. These losses were then used to reduce the company’s tax liabilities.
- HMRC successfully challenged the scheme in court in 2016.
- The Insolvency Service’s investigation into Mackie began in 2017.
- Mackie was disqualified from acting as a director for 10 years on 31 October 2024. He was also ordered to pay costs of £35,000.
Ten-year ban for director who promoted tax avoidance scheme costing HMRC more than £2.5m
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