Question:
HMRC is saying that I had a company loan of £500,000 prior to the company being liquidated. They are now saying that I owe tax on it (the sale of the property took place in March 2008). I am adamant that I did not take this amount of money from the company and wonder what do you think my position is?
Arthur Weller replies:
HMRC must have some reason for their claim. If you can produce bank and cash records for the company that account for all the money taken out of the company, and these records show that the money went to other recipients (i.e. not directly to yourself or your family, or to pay off any of your debts), then you should have proved your case.
