Results 1 to 2 of 2

Thread: Re-Compiling previously submitted Financial Statements

  1. #1
    Junior Member AndreH's Avatar
    Join Date
    Jan 2013
    Location
    Brackenfell
    Posts
    12
    Thanks
    4
    Thanked 1 Time in 1 Post

    Re-Compiling previously submitted Financial Statements

    Hi there
    A Pty Ltd was liquidated earlier this year. Seems the directors are unhappy that all the "calculated profits" of the company were shifted by the auditors to their salary accounts. Leaving the directors to pay the taxes. Another issue is that they don't trust the last 6 years' Financials, saying they believed it made no profit as they had to loan big sums of money (which doesnt appear on the financials). The directors now request for it to be recompiled and retaxed. If the liquidators are fine with the recompilation (as SARS has the only claim of PAYE monies) would it be allowable ?

  2. Thanks given for this post:

    IanF (04-Dec-13)

  3. #2
    Gold Member
    Join Date
    Mar 2012
    Location
    Vanderbijlpark
    Posts
    886
    Thanks
    83
    Thanked 381 Times in 298 Posts
    Hi Andre
    I'm not sure how it would serve any purpose, because:
    - If the liquidation was voluntary, the resolution to do so would have been signed by these very chaps.
    - If the liquidation process is complete, the companies assets have been liquidated and creditors and shareholders would have been paid a dividend (or none, depending..)
    - The financial statements to which these chaps are now objecting, were signed by them and would have included a director's report which makes it very clear that the statements are their responsibility, and so on
    - I for the life of me cannot imagine who would instruct auditors to do it anew ... the company no longer exists, no longer has shareholders etc etc, so in reality there is nobody with the capacity to instruct, other than the liquidator, who has to act in the interest of the creditors
    - Who would foot the bill?

    Looking more closely at the post, it seems they want to shift their tax liability to that of of the insolvent company, to watch it slip slide away in to the bottomless pit, as it were This might prove to be an insurmountable hurdle.

  4. Thanks given for this post:

    AndreH (05-Dec-13)

Similar Threads

  1. [Question] Close Corporation Financial Statements PIS < 100
    By fixmytax in forum Accounting Forum
    Replies: 7
    Last Post: 11-Apr-13, 09:01 AM
  2. Reports on Annual Financial Statements
    By QRS in forum Accounting Forum
    Replies: 10
    Last Post: 26-Jul-12, 07:35 AM
  3. Preparer of financial statements
    By eitnob in forum Accounting Forum
    Replies: 11
    Last Post: 04-May-12, 02:08 PM
  4. [Question] Signing off Financial Statements
    By Rikae in forum General Business Forum
    Replies: 3
    Last Post: 15-Jun-11, 12:39 PM
  5. Please provide audited financial statements
    By Dave A in forum General Business Forum
    Replies: 6
    Last Post: 07-Jul-09, 07:51 PM

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •