to report or not? that is the question. MLR

to report or not? that is the question. MLR

Didn't find your answer?

say a client has made an error/(or did not have the cash to pay) and has not filed monthly cis returns or paid the cis over to HMRC that he has stopped, (due to waiting for his refund of cis stopped on him).  

say you inform the client to contatct HMRC to get things straight, and they do, Is there a need for any report. I would say no as the money will be paid over plus i assume penalties and interest.  The clients intention was always to pay when they received the refund.

or am i wrong on this ?

Replies (3)

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By James Hellyer
18th Aug 2010 17:19

If the client has complied...

If you've told your client they've underdeclared their CIS and then they subsequently declare it to HM Revenue then there's no money laundering report due.

If next time you did their accounts all that CIS was still unpaid, then that would be a reporting issue.

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David Winch
By David Winch
19th Aug 2010 07:33

Dishonesty?

A key question here is, "Has there been any dishonesty?".

A person cannot be dishonest by mere accident or ignorance - dishonesty has to be deliberate.

If there is no dishonesty there is no criminal offence of fraud / theft / tax evasion.  If there is no criminal offence there is no money laundering and so no report is required under the MLR.

You say that the client always intended to pay when he received the refund due to him from HMRC.  You also say that the client accepted and followed your advice to contact HMRC and sort everything out.

In these circumstances I would say there has been no dishonesty - and hence there is nothing to report under MLR.

Have you looked at the Money Laundering and Crime discussion group on AWEB?

David

www.MLROsupport.co.uk

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By Fidodido
19th Aug 2010 08:36

Many thanks

to both of you.  That was my line of thinking, but always nice to get a sounding board.

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