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Accountant admits deliberately providing false information to avoid pension duties

Ref: PN18-43

Issued: Wednesday 15 August 2018

The accountant of a London cafe has admitted falsely claiming to The Pensions Regulator (TPR) that staff had been enrolled into pensions.

TPR launched an investigation into Gran Caffe Londra in Knightsbridge, run by Primadell Ltd, after the company missed its deadline to automatically enrol staff into a pension in October 2015.

When TPR arranged an inspection of the business, accountant Hashmukh Shah, 63, falsely declared that the company had met its duties.

When later interviewed by TPR, Shah, of Richmond, Surrey, admitted purposely misleading the regulator. This prevented an inspection of the business which would have uncovered the employer’s failure to automatically enrol its staff.

Shah’s false declaration paused TPR’s investigations for more than a year, during which time staff continued to be denied the pension contributions that they were entitled to.

At Brighton Magistrates Court today, Wednesday 15 August, Shah admitted knowingly or recklessly providing false or misleading information to TPR. Deliberately providing false information to TPR about compliance with automatic enrolment duties is an offence under section 80 of the Pensions Act 2004.

TPR’s Director of Automatic Enrolment, Darren Ryder, said: “It is totally unacceptable for an accountant or any other professional to file false documents to purposely avoid meeting an employer’s automatic enrolment pension duties.

“There is no legitimate excuse for such action, which denies staff the savings they deserve for their retirement.

“If a professional files false documents we will catch up with them and, like in this case, take action against them.

“This prosecution sends a strong message to accountants and advisers tasked with completing an employers’ automatic enrolment duties – if you provide us with false or misleading information we will take legal action which may leave you with a criminal conviction. We will also ensure backdated contributions are paid to staff.”

It is the first time that TPR has prosecuted a third party, working on behalf of an employer, for this offence.

The case has been adjourned until 5 September for sentencing at Brighton Magistrates Court, where the charge carries the maximum penalty of an unlimited fine.

Gran Caffe Londra eventually became compliant in March 2018 and the company has backdated pension contributions for its staff.

Editor's notes

1. The false declaration of compliance was filed to TPR in November 2016.

2. All UK employers are required by law to put eligible staff into a pension scheme and pay minimum employer pension contributions. This is called automatic enrolment because the employer is required to do it without any input from the worker.

3. Employers have a legal duty to complete a declaration of compliance when they have complied with their duties and automatically enrolled eligible staff into a workplace pension.

4. Knowingly or recklessly providing false or misleading information about compliance with automatic enrolment duties to TPR is an offence under section 80 of the Pensions Act 2004.

5. TPR is the regulator of work-based pension schemes in the UK. Our statutory objectives are: to protect members’ benefits; to reduce the risk of calls on the Pension Protection Fund (PPF); to promote, and to improve understanding of, the good administration of work-based pension schemes; to maximise employer compliance with automatic enrolment duties; and to minimise any adverse impact on the sustainable growth of an employer (in relation to the exercise of the regulator’s functions under Part 3 of the Pensions Act 2004 only).

Press contacts

Kimberly Middleton
Media Officer (DC)
pressoffice@tpr.gov.uk
01273 349554
Matt Adams
Media Relations Manager
pressoffice@tpr.gov.uk
01273 662086

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