Fraud in accounts for business valuation

[HazelSmith]

My Questions are about business valuation and veracity of records.

the party filed annual tax returns reports for four years (produced by his accountant) to the court and submitted to the forensic accountant for business valuation. however, the annual reports contain the difference figures from the ones he submitted to ATO such as GST PAID, depreciation value and others.

what is the consequence of this act In family law for property settlement? the case has been referred to the before judge due to non compliance before hand as the business valuation was not done. Now the business valuation is on its way but findings of fraud occur. What could happen in this case?

 

[CSFLW]

Do you have a independent valuation?

 

[HazelSmith]

We used the forensic accountant with joint instructions. I just wonder if the judge will do anything when this has been mentioned in the report and what a consequence or nothing happen and the judge may not deal with it?

 

[CSFLW]

Without seeing the business valuation, what was the method used to assess the value of business?

 

[HazelSmith]

He said he will use earning base but the business was presentEd with negative figures after the separation, Write off all assets and presented high expenses when no such expenses can be a proven .. what method is going to be an appropriate one in this case?

 

[CSFLW]

Thanks.

There seems to be an issue with the documents discovered (tax returns etc) and the documents relied upon by the business valuer.

When is the next hearing?

 

[HazelSmith]

in two weeks. it is also related to spending business money on personal matters also .. very messy.
my question at this stage is.. if the judge knows from the report that fraud occurs when the document was filed to the court and also when submitted to the forensic accountant will the judge do anything on this matter?

 

[CSFLW]

Without seeing the documents, it is impossible to provide any guidance.

Fraud is a very serious allegation, you need to be careful how you approach the issue.

If you need further help email us [email protected]

 

[HazelSmith]

Thank you..

 

[Rod]

Do you already have a family lawyer involved?

Someone should be looking at both sets of documents in detail and pulling apart the differences. It may well be the forensic accountant has not done the job properly, in which case you get to ask questions of the forensic accountant who is holding themselves out as an expert witness.

Proving the veracity of some expenses can be difficult but if they significantly affect the valuation it needs to be done.