The former director of FB Realisations Limited, known for decades as Balgownie Limited, a staple of Turriff’s machinery industry since 1907, has been banned as a company director for 11 years after admitting to deliberately under-declaring more than £1.5 million in VAT.
The action comes after investigations by the Insolvency Service revealed Dave Smith, 61, of Kirkton of Bourtie, Aberdeenshire, submitted false VAT returns on behalf of the business between 2019 and 2022 without the knowledge of his fellow directors.
Balgownie Limited entered administration in March 2024, leaving £3,163,795 in unpaid debts and resulting in the loss of 24 jobs, though 15 positions were retained when the company and its assets were bought out subsequently.
The official investigation uncovered that Smith:
- Claimed VAT refunds on expenses for private or personal use rather than legitimate business purposes.
- Deliberately understated tax due on sales between March 2019 and March 2022.
- Falsely claimed refunds by backdating purchases without valid invoices or evidence.
Smith admitted his misconduct in a disclosure to HM Revenue & Customs in March 2023.
Mike Smith, Chief Investigator at the Insolvency Service, said:
“David Smith’s conduct falls well below the standards we expect of company directors. By deliberately suppressing VAT payments, Smith deprived the public purse of vital funds that should have gone towards essential public services such as schools and the NHS.”
The misconduct only surfaced when a consultant queried Balgownie’s finances at a board meeting, prompting Smith to confess to manipulating the accounts over several years.
Smith’s ban began on 21 July 2025 and prevents him from being involved in the promotion, formation, or management of any company without court permission. He was declared bankrupt in August 2024 following a creditor petition.
