ICSM Business News: puzzlement over how former England rugby captain Lawrence Dallaglio’s company owed £700,000 to the taxman

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By Harry Mottram: Reading the comments online from business people and the self-employed about the court case involving Lawrence Dallaglio Limited and a winding up petition lodged by HMRC there was puzzlement on how the business could run up a tax bill of £700,000. Comment after comment pointed out that if they owed that kind of cash to the taxman they would have been wound up much earlier and some even suggested there was an element of ‘old boys club’ in action. Several pointed out that basic accounting would have prevented such a situation occuring. 

Judge Sebastian Prentis dismissed a personal bankruptcy petition lodged by tax officials against the one time rugby union star Lawrence Dallaglio after a voluntary agreement was made with HMCR allowing the money to likely to be paid in instalments. Otherwise Dallagio could have been made bankrupt – although the judge said the case would be reconsidered on October 11.

Dallagio is no stranger to controversy following allegations of drug abuse and was criticised for suggesting Wasps RFC should be treated differently to Worcester Warriors over both club’s financial collapse due to the Wasp’s heritage factor in the game.

Many sports stars have set up companies that have gone bust or have been made personally bankrupt. Ian Carrotte of ICSM said: “Just because they have excelled in their sport doesn’t mean they are any good in business or fiscally responsible with their own money. From boxer Mike Tyson to Mancehster United’s Wes Brown there’s a long history of sportsmen and women coming a cropper. My advice to suppliers to famous people and celebrities is never to accept the ‘do you know who I am’ when an invoice is unpaid. They should be treated like any other business.”

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