Purely hypothetical of course . . . .
But if a set of financial statements have been (deliberately) misstated in previous years (let's say for the last 10) and the Dec15 accounts have restated brought forward figures to taken into account these previous errors, what are the practical CT implications? Would this just be a 'conversation' with HMRC to disclosure the CT underpaid + interest and penalties and then pay this over outside of the comps/returns?
Please can we ignore GAAP conversion, internal control and legal implications here!
Cheers
Replies (6)
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Are they using Xero?
I ask just in case it is human error. I saw a case where the client was using xero, frankly had not a clue about accounting. Managed to muddle their opening balances, hey presto, instant accounts, hey presto, wrong accounts.
Talk to David Winch he will advise you.
Xero
I ask just in case it is human error. I saw a case where the client was using xero, frankly had not a clue about accounting. Managed to muddle their opening balances, hey presto, instant accounts, hey presto, wrong accounts.
Talk to David Winch he will advise you.
I'm getting more and more fed up with Xero, but this could happen on most, if not all packages.
Hypothetical?
Hypothetically the misstatements are immaterial, so I hypothetically wouldn't be hugely worried. If I'm hyptothetically incorrect in my assumptions, I'd want a lot more hypothetical detail on what is hypothetically involved.
That's a very unusual situation to have a hypothetical question about. What made you suddenly decide to ask?
Hmmm!
I wouldn't want to advise on CT implications - others are much better placed to do so.
You are talking about "fraudulent" and "deliberate" mis-statement, which is a particular type of "error". As you clearly appreciate that would have some consequences apart from the correction of CT returns (but you have not asked for comment on those other areas).
David
The tax implications are that the PYA is brought into the taxable profit and taxed in the normal way.
Xero
yes for sure you can do horrible things with any software.Is not the expression "Garbage in, garbage out"? So looking forward to quarterly accounting via my phone to HMRC!