Vlad generates a substantial income from illegal tax evasion and sought advice from Gloria (his personal accountant) on how to dispose of his illegal earnings. Gloria suggested that to disguise the source of the funds, Vlad should purchase a chain of restaurants and pass his gains from the illegal operation through the restaurants' accounts. Vlad agreed with Gloria’s proposal and appointed her as the restaurant chain’s finance director and together they passed the illegal money through the operation.

【論述題】

State the offence of money laundering.

What is placement

Define money laundering.

LT is an accountant who works for Tapa Ltd, a company owned by SP. LT has devised a scheme where TapaLtd can illegally disguise certain revenues so that the company's tax charge is reduced. Any tax that thescheme saves is paid to SP as a dividend.

Which TWO offences has LT committed

(1) Tipping off

(2) Failure to prevent

(3) Laundering

(4) Failure to report

1 and 2

1 and 4

2 and 3

3 and 4

The term insider dealing relates to a number of potential criminal offences.

Which TWO of the following are crimes in relation to insider dealing

(1) Encouraging someone to engage in insider dealing

(2) Failing to report insider dealing

(3) Concealing insider dealing

(4) Passing on inside information

1 and 2

1 and 4

2 and 3

2 and 4

State whether Vlad has any liability for money laundering.

In January the board of directors of Huge plc decided to make a takeover bid for Large plc. After the decisionwas taken, but before it is announced, the following chain of events occurs:

(1) Slye, a director of Huge plc, buys shares in Large plc

(2) Slye tells his friend Mate about the likelihood of the takeover and Mate buys shares in Large plc

(3) At a dinner party Slye, without actually telling him about the takeover proposal, advises his brotherTim to buy shares in Large plc and Tim does so

【論述題】

State whether Slye committed insider dealing when he bought shares in Large plc

State whether Mate has any liability for insider dealing

State whether Tim has any liability for insider dealing

Five years ago, Del and Rod formed a limited company, Trot Ltd. The pair were the company's only directorsand shareholders. The company was initially profitable but started making losses in its third year. Rodthought that the business should be liquidated at this point but Del persuaded him that the business shouldcontinue. Del continued to run the company but Rod, although he retained his position as a director, decidedto focus his attention on another business venture.

Trot Ltd continued to make substantial losses, but Del produced fake company accounts to hide thecompany's debts. Eventually the scale of the losses became too large to hide and the company went intoliquidation.

【論述題】

State whether a company must be insolvent for the offence of fraudulent trading to be actionableunder the Insolvency Act 1986 and Companies Act 2006