Here are the details of this case.
Iblal Zaeem Younas (“Mr Younas”) overstated the estimated turnover on an application for a Bounce Back Loan (“BBL”) resulting in Easy Taxis (NW) Ltd (“ETNW”) obtaining a BBL that it was not eligible for.
In that:
- Under the terms of the BBL scheme ETNW was entitled to apply for one BBL of between £2,000 to a maximum of £50,000 being 25% of its estimated annual turnover from the commencement of trade in May 2019.
- A further condition of the BBL scheme was that the proceeds of the BBL loan obtained should be used solely for the economic benefit of ETNW.
- Mr Younas applied for a BBL of £50,000 from Bank A which was paid into ETNW’s bank account on 10 August 2020.
- Mr Younas has provided a cash flow forecast prepared by his accountant.
- The forecast shows annual turnover of £290,420.
- Both Mr Younas and his accountant have failed to provide any of the supporting information to test the reasonableness of the forecast.
- The accountant has confirmed that no advice was provided in respect of the BBL application.
- ETNW’s bank statements show credits amounting to £6,156.15 between 28 June 2019 (when the bank account was opened) and 30 July 2020 (immediately prior to the BBL application being made).
- Of this income, £5,700 came from loans and the remainder relates to cancelled direct debits and interest.
- No cash or other receipts expected of a Taxi firm are credited to ETNW’s bank account to indicate any level of turnover.
- On this basis, ETNW was only eligible for a BBL of £2,000.
- The opening balance immediately before the BBL was received was £128.82 in credit.
- The BBL funds were dispersed between 10 August 2020 and 01 June 2021.
- Additional income received into ETNW’s account after 10 August 2020 totals £11,523.31.
- No repayments were made by the Company in respect of the BBL and £50,000 remained outstanding at Liquidation.
