Tax Relief For Victims of Fraud
Abstract
The consequences of a theft or fraud perpetrated upon a business will invariably extend beyond any immediate pecuniary loss. The attentions of management, which would otherwise be engaged in the day‐to‐day supervision of the business, are instead diverted on to such matters as the investigation of the theft or fraud and the instigation of appropriate remedial action. Costs are magnified by the need to involve external professionals: legal costs arising from an attempt to recover assets from the wrongdoer, management consultants to advise on improvements in reporting systems and internal controls, and, where the theft or fraud has been concealed within falsified or incomplete accounting records, the engagement of forensic accountants to establish the true financial position of the business. The extent to which these, very substantial, costs together with any loss arising from the theft or fraud itself may be subsidised by the Exchequer in the form of relief for taxation purposes is, therefore, a topic of considerable practical relevance to the victims of theft or fraud.
Citation
Gibbs, D. (1997), "Tax Relief For Victims of Fraud", Journal of Financial Crime, Vol. 4 No. 4, pp. 332-336. https://doi.org/10.1108/eb025799
Publisher
:MCB UP Ltd
Copyright © 1997, MCB UP Limited