Entrepreneur Loses The Dragons Over Tax Avoidance Claim | Dragons' Den

yeah I'm gonna be honest if I don't have I thought my dad answer that question it's a big number can't just stand there and say oh actually I don't know where that 250,000 found is so there was a HMRC penalty of around 200k next into the den is Nilesh pandit a former footballer from london he's a confident entrepreneur who believes his winning strategy will reward him with a trophy investor if the Dragons tried to boss me around then I don't believe it would work because everything's airtight it's a proven business I've got the answers to all their questions and I've gone through it all and there's absolutely no pitfalls with business hello dragons my name is Dinesh Pandit I'm the managing director and owner of play 5sy limited today I am seeking a hundred thousand pounds in exchange for twelve and a half percent off the business play 5sy limited began back in 2009 where our focus was after work football leaks since then our product range has diversified to include Turin's parties corporate sports tournaments other sports events like net ballin and so forth I believe I've spotted a gap in the market a few years ago I was walking past an adventure playground this playground had just received funding for a brand new Sports pitch however it did not get the funding for fencing and front lighting to go alongside it so I approached the playground and I said to them well we can do that for you in exchange for commercial use in the evenings so we would let out to our corporate clients the playground naturally bit my hand off so we have rolled this project out at five different locations all with great success now our key ambition is to partner with schools so I'll give you an example we would develop their surface for them upgrade from their tarmac again free a completely free of charge in exchange for that we would ask for a set number of rent free weeks to recoup the investment the school would then charge us a rental after this investment is complete and then receive the revenue as a resolve that looking at the figures play 5sy limited since our inception has turned over in excess of two million pounds our most recent net profit figure is a hundred and thirty seven thousand pounds in addition to this I believe this is an idea that can really change the shape of Britain Jenny Campbell is the first dragon to get the ball rolling tell me a little bit about you what you've done before how you came to this idea um so back when I was about 15 16 years old I used to pray up to play on a semi-professional level then I had a bit of an ankle break which led me to take time off and I went into education those whilst I was on my internship where I spied the gap in this market I cannot stand working 95 day and I can't take direction couldn't take direction for my bosses I found myself very inactive ultimately I spotted that teams within this company were playing Fiverr site so I decided to set up an internal work league for them and the demand was crazy then I went back to university completed my degree and I solved the biggest University Football League but the pitch development idea is one that's untapped and that's the idea that I want to get into give me a sort of broad brush costing off you see Iike a playground and you go and pitch to the owner of that so a typical five-a-side venue which could be say 20 metres by 34 could cost anywhere between 17 k2k you said the business has turned over 2 million so far and in the last financial year that was 137 so that was the net profit so in the most recent financial year yes the turnover was six hundred ninety four thousand so it's going great guns yeah it's guys getting very well along and I can't I can't Kyle is very good at the moment the healthy numbers have one Nilesh a fan in Jenny Campbell but it's going to take more than talk of sizable profits to impress Peter Jones you're kind of basically a finance house I wouldn't say so but I'll let you continue you'll let me continue yes are you I'm not I don't finance the sense we provide activities so why don't you get them to pay for it because a lot of them they don't have the funding I'm not sure if you've read recently but a lot of youth services the sectors have actually had their fundings cut yeah yeah there's a lot of people playing football but you mentioned netball but you wouldn't play netball on it you could I mean if you look at the surfaces and officer the lines there but they wouldn't play netball or on astroturf of quite absolutely they would no they wouldn't absolutely they would no they wouldn't 100% they would can I tell you why they would want a clown astroturf as opposed to Tommy yeah I'd love to right so you know women and men okay if they playing on tarmac it's a hard surface straightaway damages your knees addition we're in quite a rainy country if it rains tarmac slip-and-slide I do a lot of work with with netball England in fact my daughter actually is in the drafting England squad and I go every single weekend to matches all over the country and I can tell you they will not want to be playing on astroturf yeah so having known that you didn't even ask me or even want to entertain why I might be so knowledgeable at netball I can only apologise about that can you answer me the can't take instruction but I really want to get past that so if I'm suggesting ideas and you clearly have a very strong opinion yeah where do you go with that you have achieved far more than I have so I would definitely respect and take the opinions on board and what you do with the opinion if you didn't still believe that I think we were just telling us right just have a heart to heart like we like we are now and just say well I don't believe it to work because of X Y and Zed you can then come back to say well actually it should work because of X Y and Zed so again it's the respect level again so I always listen to my staff report I like this Nilesh oh thank you I'm sorry about the previous no he's gone now he's left right yeah yeah because this just is good okay it's a strong defense from Nilesh who survives a grilling from Peter Jones to keep the dragon firmly on side but next on the attack is Debra Medan demanding more detail on those numbers what are your retained profits so obviously last year was 137 thousand pounds prior to that it 120 mm yeah and year before that was one hundred and fifty seven thousand okay so I'm trying to square something off here let me understand your capital investments about thirty thousand pounds because yep you've got five pitches so you've spent a hundred and fifty thousand pounds worth of cash yeah you've made three hundred fifty thousand pounds worth of four hundred four hundred thousand pounds worth of profit yeah yeah where's the rest of the cash so the cash probably not understand the question - well so you've generated nearly 400,000 pounds worth of profit yes you have reinvested about a hundred and fifty thousand pounds into the business yeah yeah where's the rest of the money so he's saying what is the difference between 260 and 400 okay so there are basically there's a lot of ongoing maintenance works no well that's in your profit and loss yeah okay and that's you're not showing it in your profit and loss no no you should it should all be showing but I'm max I should I should don't say yes but taxes all paid up so it's it's no I mean out of the 400 profit you must have paid tax so that comes off the 400 is that yeah pre or post tax no supposed tax everything's post text that's post tax profit yes is the finest of bottom line I get this little switch in me and it says something's not working out here okay yeah I'm gonna be honest if I don't have something I would answer that question it's a big number I'm not gonna like that you can't just stand there and say oh actually I don't know where that 250,000 found is I don't know I don't I don't get okay well alright so a few years back so there was a HMRC penalty of around 200k which has been I've been paid oh okay what was that about that was ultimately all about literally not showing the appropriate numbers within so to have a penalty of two hundred thousand pounds how much did they say you weren't declaring again I don't know the numbers sorry two hundred thousand pound tax penalty and you're telling me you don't know the numbers i i'm exasperated are you hearing these words yeah i agree yeah okay I think I know what no I know where I am okay because I gave you my money mm-hm I would be absolutely terrified that you would fail to remember what you've done with it but people do learn from the mistakes so you think that they becomes stronger that much money it's a lot of money but has it happened again since then I have no idea I'm really sorry about this but that's done it for me on it [Music] disaster for Nilesh as his delay in revealing the reason his books don't balance leads to a swift exit from Deborah Medan will tase Levani be any more understanding what concerns me is you mentioned that you've learned from your mistakes and when Deborah was questioning the gap in the accounts you should have strayed away bullet up then yeah but you acted like you had no idea what she was talking about she literally took a dragon out of you and if you said you've learnt for the mistakes that should have been your opportunity to straightaway explain what the gap was I'm afraid I'm out okay we all make mistakes of course but there are mistakes there are mistakes I agree however you weren't quite open with your figures the mistake was made and what I made a long time ago - fine fine look look the question we're at now is am I gonna part with my money with you the answer is no so I've got a safe I'm not gonna invest in you and I'm out okay thank you I think it's very hard to sort of decide when when to pull your skeletons out of the cupboard or not because you probably thought well if I go in and say I had this lesson and then let's move on and talk about the future would that kill you pitch from the beginning but there is a moment in time when you you know need to be honest with people so just learn that lesson you you are a very credible young man thank you and you are running a successful business and hopefully paying all your tax now perhaps or learn from that I'm out for dragons out and it's beginning to look like it's all over vanillish Peter Jones was previously won over by the entrepreneurs change of attitude will he be the one to save this rapidly sinking pitch we didn't start off on the right foot and I think that in business people buy people first and pain I think that's really really really important that you embrace that today yeah and I'm gonna make it slightly worse for you I would have invested today because I really liked the idea I think it's very unique and it's good is there anything I can do to change your mind [Music] if you had just been really straight that would have been okay with me actually even though it may have not been with others so I'm going to say that I'm out thank you Peter Jones shows the sports pitch business the red card and the driven entrepreneur exits the den without the hundred thousand pound investment he was so confident of securing he had a moment to just tell the truth and I just had to work too hard I completely agree with you - to work too hard to get it out everybody makes mistakes unfortunate I've been penalized for a mistake almost a million million years ago if you want to think of it in business terms I guess they fail to realize that I lost everything and I still came back from it you you

Channel: Dragons' Den

Views: 3,206,546

Keywords: bbc iplayer, united kingdom, british tv, british tv shows, watch uk tv online, watch british tv online, dragons, den, new, series, worst, pitches, funniest, moments, most, shocking, ideas, products, businesses, peter jones, deborah meaden, dragons den worst pitches, dragons den funny, dragons den series 17, dragons den 2019, shark tank, shark tank 2021, new dragons den, new shark tank, Nilesh Pandit, HUGE Tax Repayment, football pitch businessman, 5-a-side

Id: Czddra6lrlI

Length: 13min 18sec (798 seconds)

Published: Sat Jul 13 2019