Refunds

This is a question of whether a refund should for MLR purposes only be made to the original payer.

The situation is that a Ltd Co paid an annual subscription.  That company has now ceased to trade and the director requires the refund that is due to be made out to him personally.

Ordinarily I would say that the refund should be made to the original payer but should I have concerns here and would the position be different if:

i) the company had ceased to trade/became dormant but still had a bank account;

ii) as at i) but bank account had been closed;

ii) removed from the register; 

Regards

BGH

 

 

Comments
davidwinch's picture

Do you suspect dishonesty?

davidwinch | | Permalink

The issue here (and in many other cases) is whether you suspect any dishonesty.

If the refund is being paid to the director simply to avoid administrative inconvenience because the company has ceased to trade (or to have a bank account, or to exist) then there may well be no problem.

On the other hand if the refund is requested to be paid to the director as a means of avoiding creditors of the company getting their hands on a company asset then that is dishonest and there is a problem.

Does that help?

David

REFUNDS

Barry VAT | | Permalink

That's great David and thank you for your opinion

Regards

BGH

 

 

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