TaxCorporate TaxIllegal dividends prompts tax investigations

Illegal dividends prompts tax investigations

Insolvencies reveal concern for taxman

A warning has been issued that many company insolvency are sparking
investigations because of suspicions of illegal dividend payments being made.

According to
Contractor
accountancy firm Wilkins Kennedy that HM Revenue & Customs is aware of
a sharp increase in in potentially unlawful loans and distributions.

The firm said that the last eight out 10 insolvency cases taken on have led
to investigations because of alleged illegitimate actions by directors.

Wilkins Kennedy partner Keith Stevens is reported saying some owner managers
view taking an illegal loan from their companies as easier than curbing their
spending.

Read more:

Taxman
reveals avoidance schemes

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