34. Watch your Stock

Warning 34
If you are in business, check your accountant is advising you correctly on stock. Undervaluing your stock figure is not tax avoidance – it is tax evasion and you can run the risk of paying the penalties and the extra tax normally involved. Also, this method of tax deferral can create a false picture of the true state of your business. Another point of concern is how long before directors and professional advisers of a company in liquidation, who have in the past manipulated the stock figures to unacceptable heights, will be found liable for fraud or falsification of business records. Watch this.