Accountancy Age, Accountancy Age, Monday 2 August 2010 at 10:18:00

Insolvencies reveal concern for taxman


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

According toContractoraccountancy firm Wilkins Kennedy that HM Revenue & Customs is aware ofa sharp increase in in potentially unlawful loans and distributions.

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

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

Read more:

Taxmanreveals avoidance schemes