A Midlands businessman has been banned from holding company directorships for seven years after transferring millions of euros abroad while his insolvent firm owed a staggering £32 million to HM Revenue and Customs.
Substantial Transfers Amid Mounting Tax Debts
Paul Bresnihan, 49, of Castledine Avenue in Quorn, Leicestershire, was the director of Leicester-based payroll company CJS Engagement 2 Ltd. The firm received notification from HMRC in March 2023 that it had underpaid its VAT obligations and was required to settle the full amount immediately. Despite this demand, no payment was forthcoming from the company.
Three months later, in June 2023, HMRC presented a petition to wind up the business, citing an outstanding debt of £32,427,882. The company was subsequently wound up in August 2023 following legal proceedings.
Investigations Reveal Overseas Money Movements
An investigation conducted by the Insolvency Service uncovered that between June and July 2023, Bresnihan transferred 4.8 million euros from CJS Engagement 2 Ltd to a company bank account located in Montenegro. Crucially, he provided no explanation for these substantial overseas transfers and failed to cooperate with the Insolvency Practitioner's attempts to retrieve the funds.
Kevin Read, chief investigator at the Insolvency Service, stated: "Bresnihan seemingly ignored the debts his company owed while continuing to transfer money abroad. This seven-year disqualification will ensure he is unable to be a director or be involved in the running of a company for a significant time."
Legal Consequences and Recovery Efforts
Bresnihan signed a disqualification undertaking, which legally bars him from acting as a company director or participating in company management for seven years. The ban took effect on January 27, 2026. By signing this undertaking, he has formally admitted his errors in handling the company's financial affairs.
Read added: "In signing the undertaking, he has admitted his errors and now every effort will be made to recover the funds." The Insolvency Service has emphasised its commitment to pursuing the recovery of the transferred money through appropriate legal channels.
This case highlights the serious consequences facing directors who attempt to move company assets abroad while neglecting substantial tax liabilities in the United Kingdom. The seven-year disqualification serves as a significant deterrent to other business leaders who might consider similar actions.
