Hi all, just a bit worried on how to keep records straight when the owner of this business asks that all cash sales invoices are not to be recorded on our books. All cash that comes in from cash sales is either handed to the owner or banked into their personal account. Only records for invoices paid via cheque or eftpos are to be recorded. Please advise how such a situation is to be handled.
I've seen what time in the morning you wrote this so I suspect that it is (rightly) worrying you a lot.
Do you even know how much they are not including in their books?
You need to tell the client that what they are doing is illegal and that every penny that they make must be accounted for.
If they refuse to listen to you then what they are doing must be construed as tax evasion which is a crime under the MLR Anti Terrorism Legislation.
You are bound under MLR to make a report (a SAR (suspicious Activity Report)).
At no stage tell the client that you are reporting them and when you break off your relationship with the client (which personally I would) you must ensure that you do not tip them off in the process as that would be a criminal offence on you.
I would also with some urgency speak with the legal department of you supervisory body to get their advice (it's likely to be the same as mine but given in an official capacity by trained lawyers).
Sorry, I know that this is probably not what you want to hear. I know that you probably have a close working relationship with your client but your override to income and client loyalty is to just make sure that you keep yourself unfined and out of jail!
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Poster. What is the relationship to the business? Employee or client?
My first response assumes that they are a client.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
What should happen is the income is recorded as Credit sales, Debit directors account/sole trader drawings. Or credit net sales, credit VAT, if applicable
Shocking that they would force anything upon you. If an employer, even worse. You don't want to be implicated in their fraud! Time to hit the employment pages.
