Situation - What action to take
burg
Registered, Moderator Posts: 1,441 mod
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!
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!
Regards,
Burg
Burg
0
Comments
-
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!0 -
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.0
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