Tipping Off?

Posted by Mallock PM | on Wed, 06/02/2013 - 15:38 1065 8 comments | report

If we can take a hypothetical situation of a company with a large debt owed to HMRC. When preparing last year's accounts the accountant advised the business to speak to HMRC and make some arrangement to pay the liability over a period of time. This year's books and records arrive and instead of the debt reducing, it has increased. For some reason HMRC have not pursued the debt. The accountant makes a report.

Can the accountant continue to remind the client about the liability and urge him to speak to HMRC and arrange a payment plan or having made a report, should he just keep his mouth shut?

Comments

it a sort of madness isnt it

carnmores | Wed, 06/02/2013 - 15:44 | Permalink

if a corporation tax return is filed why is a report necessary

where is the crime?

The Black Knight | Wed, 06/02/2013 - 15:47 | Permalink

Where is the crime?

It's PAYE and the crime is in

Mallock | Wed, 06/02/2013 - 15:51 | Permalink

It's PAYE and the crime is in not having submitted a P35 for last year and now, apparently, having underpaid the amounts due for the current year.

Still don't get it

The Black Knight | Wed, 06/02/2013 - 16:04 | Permalink

Still don't get it but perhaps still missing parts of the question?

What's not to get?

Mallock | Wed, 06/02/2013 - 16:17 | Permalink

Don't submit a P35 in the knowledge that PAYE has not been paid in full for the year - crime is retention of money due to the Crown.

Underpay PAYE for the next year - I don't know yet but presumably by underpaying each month - crime as above.

Deliberate? 1 thanks

The Black Knight | Wed, 06/02/2013 - 16:29 | Permalink

If it's deliberate. ........evasion of tax then perhaps...HMRC are not usually bothered about the tax when they have the penalty for a late return.

deliberate non completion of return to hide true liability would be an offence.

just a late return would not be?

Consider reporting to absolve yourself and continue.

HMRC will do nothing, they manage to loose billions each year like this and would not even notice if they looked at the accounts to discover outstanding liabilities there.

Tipping off 2 thanks

davidwinch | Wed, 06/02/2013 - 16:48 | Permalink

I would echo the point that there has been no crime (and therefore nothing to report to SOCA) unless there has been DELIBERATE AND DISHONEST submission of false information to HMRC or submission of no return when one is due.

If a report has been made to SOCA then telling the client THAT YOU HAVE REPORTED TO SOCA could be tipping off.

But ordinary advice about the outstanding liabilities and the need to submit correct returns and payments is not tipping off. So carry on reminding the client.

David

and yes the original question

carnmores | Thu, 07/02/2013 - 16:30 | Permalink

is poorly worded so our points are valid - anyway if they are registered they will be fined automatically. talk to the hand but listen to DAVID

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