Settling up

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As we know clients often believe that we audit their tax affairs as well as their financial statements.

While this issue should be approached with caution – in almost all cases an audit firm is not engaged to review non-audit related information – I do feel that we have a responsibility to highlight tax errors that are apparent from the audit evidence gathered.

This is where mistakes over benefits in kind often rear their tiresome heads. The aim of this short article is not to discuss when a payment by the company does or not give rise to a benefit for the employee but to examine the tax implications for the different ways of settling the liabilities that arise.