ECH17035 - Directors: Recovery by Class 1A and Class 2 Settlement
When omissions of expenses and benefits in respect of directors
are discovered it is Departmental policy to settle the duties
arising with the director personally, by means of a negotiated
contract settlement.
Contract settlements with individuals are referred to for
accounting purposes only as
- Class 1A settlements for culpable duties up to £40,000 and
- Class 2 settlements for culpable duties exceeding £40,000
Directors may be liable to penalties for the submission of
incorrect or late personal tax returns
ECH17025.
If the company, rather than the director, settles the duties
due, there would be a perception that directors were being relieved
of their statutory responsibilities.
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Freedom of Information Act 2000)
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Note
Omissions of expenses and benefits for directors typically arise
in 'close company' situations. In these situations directors can be
instrumental in arranging untaxed rewards.
(This text has been withheld because of exemptions in the
Freedom of Information Act 2000)
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Freedom of Information Act 2000)
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- (This text has been withheld because of exemptions in the Freedom of Information Act 2000)
