[Opinion] Unpaid Related Party Invoices

[TheMerchantOfVenice]

A substantial amount of money was invoiced to a related party, reason apparently was for the related party to rather pay 15% VAT than to pay company tax.

The invoice was never paid and the company owed has been put into voluntary liquidation.

Is this evasion or avoidance? Should the liquidator be going after the debtor? Is this the moment to hit the "report a suspicious activity" button on SARS website?

[TheMerchantOfVenice]

Any opinion on this would be greatly appreciated.

[Dave A]

One question is how is the related party going to process the bill received that they haven't paid?
It has to be cleared off the books somehow.

[TheMerchantOfVenice]

My point exactly...these are the same people who closed the company we worked at and not the company we worked for. Trying to get away without paying retrenchment and now avoiding/evading tax. (my previous post you responded to, thanks) There is no way they will clear this off their books, nor pay the invoice. Whenever questioned on this the answer is always "oh it's just a book entry".

[Dave A]

One suggestion - If the companies are audited, report the matter to the auditor of each company.