Question 2c
Your manager has had a meeting with Gail. Gail owns the whole of the ordinary share capital of Aero Ltd.
An email from your manager setting out the matters discussed in the meeting is set out below.
Email from your manager — dated 9 June 2016
Please carry out the following work:
(c) Non-disclosure of income
Gail has realised that she has not declared some of her income in respect of the tax year 2011/12. As a result of this, her income tax liability for that tax year was understated. I have already explained the interest and penalties which may be charged in respect of this error.
State the other matters which need to be considered, by us and by Gail, in relation to the disclosure of this error to HM Revenue and Customs (HMRC).
Tax manager
Required: Carry out the work requested in the email from your manager. The following marks are available:
(c) Non-disclosure of income. (5 marks)