Solicitor: amount owed by firm set against amount owed to firm
In D Demetriou v HMRC (TC01249 – 13 July) a firm of solicitors discovered that one of its partners (D) had arranged for £90 000 to be withdrawn from the firm without authorisation.
The firm took legal action against D and required him to retire from the firm.
D was also struck off the Roll of Solicitors by the Law Society.
D had been entitled to a share of the firm’s profits for 2004/05 and 2005/06.
Rather than paying this to D the firm set most of this against the amounts it was owed by D (which included legal costs as well as the original unauthorised withdrawal).
D did not include the amounts which the firm had retained on his 2005/06 tax return.
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Solicitor: amount owed by firm set against amount owed to firm
In D Demetriou v HMRC (TC01249 – 13 July) a firm of solicitors discovered that one of its partners (D) had arranged for £90 000 to be withdrawn from the firm without authorisation.
The firm took legal action against D and required him to retire from the firm.
D was also struck off the Roll of Solicitors by the Law Society.
D had been entitled to a share of the firm’s profits for 2004/05 and 2005/06.
Rather than paying this to D the firm set most of this against the amounts it was owed by D (which included legal costs as well as the original unauthorised withdrawal).
D did not include the amounts which the firm had retained on his 2005/06 tax return.
Following an enquiry HMRC...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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