It has come out that a firm, which underwrote a grant of £1 million, is the focus of an investigation by the Welsh Government.
Tax evasion inquiry to firm
Euro Foods Group, a grant guarantor to Kukd.com that is currently probed, is a supplier to the UK catering industry.
The HM Revenue and Customs is checking “certain irregularities” in the company’s tax affairs during the period of 2005 – 2015.
In September, BBC Wales made public that the Welsh Government was conducting an investigation regarding the circumstances around the grant aid awarded to Kukd.com, an online food order service, following anonymous allegations made to Edwina Hart, the then-Economy minister, last December 2015.
Shelim Hussain MBE, the Euro Foods Group director, set up the restaurant booking and takeaway order service last January 2014.
Kukd.com received public money from several jobs which were outsourced overseas, and the Welsh employees were made unnecessary.
Additional allegations indicated that the Euro Foods employees were transferred to Kukd.com to fulfil grant conditions. Aside from this, the family and friends of Mr Hussain were also in the company’s payroll.
Mr Hussain denied allegations and told BBC he had only been completely transparent in every dealing.
Kukd.com got £2.75 million in business finance due to its creation of about 282 new jobs within three years, the first £1 million drawn in three different payments in 2015.
Euro Foods Group is responsible for repaying the Kukd.com grant, when conditions are not completed in 2018.
HMRC discovered certain irregularities while investigating the affairs of the company during the period of 2005 – 2015. The company quantified these irregularities to the best estimate, but the entire extent of possible liability that results from the investigation still needs to be agreed with the HMRC.
Even if it is already established how proper tax submission is important, there are still companies, or even individuals, who do not comply. This is why tax investigations are conducted, sometimes randomly. Importantly, a tax investigation insurance cover is essential for individuals and firms which are going to be subject to these investigations, to minimize hassles and ensure the costs tied to the process.