Unwitting business leaders personally responsible for VAT
01 Nov 2016
Businesses and their directors could be penalised for employees going behind their back and undertaking fraudulent actions if they “knew or should have known their transactions were connected with fraud”.
Tax experts have voiced their concerns over the HMRC consultation on VAT reform, which could see business leaders held personally responsible for employees actions. They argue that directors could become collateral damage by being accused of fraudulent actions, despite being wholly unaware of the fraud.
With this in mind, it is more important than ever that businesses be vigilant and put robust infrastructures in place to help stop a fraud from occurring before it’s too late. Whilst many companies do not need an audit due to rising thresholds, an audit can give comfort to business owners and act as a fraud deterrent. For further information contact Beavis Morgan Partner, Matthew Burge.
If you have any concerns that your business may have been subject to fraud, our forensic experts are available to assist. Contact Simon Hammerton for further information and for a confidential discussion.