Situation - What action to take

burg

Hi All,

Have an unusual situation that I don't quite know which way to go with.

I am engaged for accountanct services for Company A. Run by Mr A although his brother is the director and owner.

Mr A used to be involved in another Company in the same industry - Company B - but I never acted for them.

When doing the Accounts for year 2 of trade to 31 May 11 I noticed there were no longer any wages in the accounts. There was a small amount last year but I know the business has grown and they have at least 3 members of staff.

Upon asking the question of where have the wages gone I am told that they have been out through Company B. Company B however was dissolved in August 2010. My suspicion is there is potentially un-declared income and an SAR is required.

Under tipping off I believe I can still make enquireies such as asking the director if he knew the company was dissolved I just can't tell him about reporting him if I do.

Arrgghh Clients!

Monsoon

I think you've answered your own question, you just needed to let off steam a bit ;-)

I agree, ask him about Co B being dissolved and see what happens.

Clients, indeed!

cheapaccounting

If you suspect money laundering be careful as it is NOT your responsibility to prove it but a suspicion does have to be reported.

My approach on this would be ‘to act dumb’ and say ‘oh I’m not sure I follow as I thought company B has been dissolved.’

You may find that a new company or business has been set up. However depending on the response I would be careful about investigating further.

Discuss with your ethics help line and take their advice. Be prepared to walk away though.

We had a situation recently where we had to report and walk away from a new enquiry. We acted on information provided but did not investigate it fully – we left that to the professionals.