# Underpayment of VAT-consequences???



## Stormgirl (28 Mar 2013)

Hi,

I work in accounts for a small company and am worried about the consequences of under declaration of VAT which happens every time the VAT return is due. There is never enough money after the salaries are paid for the VAT, and the company is basically using Revenues money to continue trading. I discuss with the owner what can be paid always pushing to pay more, but she is quite blase about it and there is usually a shortfall of approximately 3 or 4K per VAT return.

I am the one who signs off on ROS on instructions from the owner, and am worried if there was a Revenue audit, I would be liable for prosecution, or liable for something. I desperately need the job and have not been able to find another one, but am not happy doing this. Whether this is common or not I dont know, if a business cant pay its taxes in full on an ongoing basis should it close down? In this case there would be approx 8 people unemployed as a result.

I would appreciate any advice or thoughts.

Thanks


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## Joe_90 (28 Mar 2013)

Is it an underpayment ie you say you owe 5k but only pay 2.5k or an under declaration where you owe 5k but file a false VAT return declaring 2.5k.

Revenue will contact the company about arrears for underpayments. Lots of companies are having cash flow issues but the directors need to engage with Revenue.

If its under declaration this very serious and is tax evasion!!!


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## Stormgirl (28 Mar 2013)

Joe, I'm afraid it's deliberate tax evasion, the owner is banking on the business never being audited, as I say I dont like it, and am worried about the consequences for myself as the accounts person, but cant afford to give up a job, and even if I did, what would I say in another job interview why I did, as they always ask you that question?


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## Harry31 (28 Mar 2013)

Well, going by the consequences for a bottle blond TD lately - nothing should happen!


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