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educatortech, Professor
Category: Business
Satisfied Customers: 5240
Experience:  M.A., M.S. Education / Educational Administration
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A director has taken £100000 from a limited company over 7

Customer Question

A director has taken £100000 from a limited company over 7 years by way of fraudulent expenses claims, taken as cash advances against his future expenses. HMRC have investigated and decided to tax this money as income, not DLA loan. The company has stated
these payments are unauthorised and fraudulent and false accounting. Can the company now invoice the director for the return of the cash taken, net amount? If the director paid the principle amount back to the company, does that mean the hmrc tax as income
is wrong, as he in the end paid it back or was this theft by a director and he has to pay the tax as well?
Submitted: 2 years ago.
Category: Business
Expert:  educatortech replied 2 years ago.
Hello, my name is***** is not a simple solution on this, especially in the United Kingdom. Since HMRC has deemed it to be income and taxable, the director is going ot have to pay taxes. It is up to the company to determine how they will proceed in getting the money back from the director if taken fradulently. most likely this will be done through the courts and a lawsuit for the money that was taken illegally. In addition, there might be criminal proceedings against the director if the authorities determine a crime has been committed. The director would be able to assist themselves if they returned the monies when it came to those legal issues.