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|Paul MacKenzie subject to BRO for running up gambling debts prior to bankruptcy|
|Thursday, 25 August 2016|
Scotland’s insolvency service, Accountant in Bankruptcy (AiB), has obtained an eight-year Bankruptcy Restrictions Order (BRO) for a debtor due to his misconduct before his bankruptcy.
The BRO was imposed on Paul Hall MacKenzie, 190 Crosshill Road, Bishopbriggs, Glasgow.
Mr MacKenzie filed for his own sequestration which was awarded on 13 March 2015 and AiB conducted a full investigation into his behaviour leading up to and during his bankruptcy.
AiB found that Mr MacKenzie failed to pay capital gains tax on over £10 million he received through the sale of shares of his business, while continually gambling large sums of money, totalling around £15 million, despite being aware of this tax implication.
Mr MacKenzie also transferred funds from the sale of property in Cape Verde to family members two days before applying for his bankruptcy.
AiB submitted a BRO application to Hamilton Sheriff Court on the grounds that Mr MacKenzie had continually gambled and increased his debts, and transferred cash prior to his bankruptcy. Following a hearing in March 2016, Sheriff Smith made a BRO against Mr MacKenzie for a period of eight years.
Richard Dennis, Chief Executive of Accountant in Bankruptcy, said: "The Accountant in Bankruptcy will investigate and ask for Bankruptcy Restrictions Orders to be made against those who have undermined the bankruptcy process
“By highlighting untoward behaviour by individuals such as Mr MacKenzie, we aim to warn debtors of the risks and potential consequences of their actions before and during their bankruptcy.
“The Register of Insolvencies is also publically available for all creditors and employers, as a place they can check if someone they wish to do business with or employ is subject to restrictions.“
There was a record number of BROs made in Scotland in the last full financial year, 2015/16, with over 90 being awarded. Details of all debtors who are subject to a BRO or Bankruptcy Restrictions Undertaking (BRU) are recorded in the public Register of Insolvencies, which can be viewed via the AiB web site.
AiB has allowed debtors to sign BRUs as an alternative to making applications to court for BROs. A BRU imposes the same restrictions on a debtor as a BRO.
Following a change to bankruptcy legislation on 1 April 2015, any person made bankrupt on, or after, 1 April 2015 cannot offer to sign a BRU as an alternative to a BRO. AiB can now make BROs for restriction periods of between two and five years and sheriffs will continue to make BROs if the period of restrictions will be between five and 15 years.
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