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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4360
Experience:  FCCA FCMA CGMA ACIS
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Dearbigduckontax,The properties were seized by a bank

Customer Question

Dearbigduckontax, The properties were seized by a bank during recession period of 2010-2011. In the year of year of seizure of his his properties, some rental income was received for a part of year. For the remainder period of the year 2011, he is suing the bank for loss of revenue and the corresponding profits he would have made, had those properties not been zeized. The question arises as he has not submitted accounts for the years, 2011, 2012, 2013 and 2014 is that should he file his accounts for the year 2011 as under:- 1. Revenue-rental income received in year 2011 and the rental income lost durint the year 2011. 2. Show all other revenue expenses as if the properties were a going concern. 3. More or less what he is claiming from the bank : Sales-Rental Income......... Expenses: Admin costs all relevant expenses. Gross Profit..... Less....... Tax Profit for the year. Should he adopt this policty for the rest of the years. If he does, would HMRC allow him to adjust his account going back as far as back as 2011. In case HMRC does not allow then he losses monies for the tax for accruals sales. Await your response, Wtih Regards, ***** ***** XXXXX

Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Mohan, I'm Keith and happy to help you with your question.
I would be inclined to file as you suggest. If his action is successful the court's award could then be brought into the accounts as an exceptional item. As in the end the court action involves business activity, albeit activity which could not take place because of the seizure, then the award would be taxable. Any Award could be brought through a current period account as an exceptional item or, alternatively, the filed account amended.
In the circumstances I am sure that you will find HMRC quite amenable. Not all taxmen are ogres.
I do hope I have assisted you.
Customer: replied 2 years ago.

Dear *****,

I need help in preparing some docuyments relating to cash-flow and proving a fact that because of lack of cash flow, we lost an opportunity in vesting in future projects and thus the profits. Please tell me how to attach those documents with a questionair for your good self to look at those questions.

Await your reply.

With regards

Mohan X XXXXX

Expert:  bigduckontax replied 2 years ago.
Mohan
This is an entirely different question and I must ask you to list it as a new one. You can mark it for my attention if you so desire.
Regards
Keith
Customer: replied 2 years ago.

Keith

I am not going to and/or ask for a free lunch. Of course, I will pay and is not all my intention to have a free ride. What I asked is how can I send you documents which you need to go through before you would be able to answer my question. As for future, please don't worry about your money. If your good self can resolve to my satisfaction, you shall be paid over the top.

Especially it applies to this problem.

With regards,

Expert:  bigduckontax replied 2 years ago.

You are asking the wrong professional. This is really a matter for your solicitor who would pursue the action for you or alternatively make a settlement.

Just Answer protocol does not permit me to acr=t professionally outside the envelope.

Customer: replied 2 years ago.

Keith

Thanks and I will be in touch when again I need your help.

Thanks once, again,

With regards

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of some help.
Please be so kind as to rate me before you leave the Just Answer site.
Expert:  bigduckontax replied 2 years ago.
Poost to clear my question list.