Anonymous
Anonymous asked in Business & FinanceSmall Business · 2 months ago

Is it normal to forgive embezzlement perpetrated by family in a family business? Or is it usually treated the same as if it was a stranger?

6 Answers

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  • 2 months ago

    You can forgive because its a family matter and ought not to be treated like that involving a stranger.

    Everyone wants a peaceful environment in their home and forgiving such wrong is not far from maintaining peace. All you must do afterward is to make sure such doesn't repeat itself again. Tighten up things and be more strict and calculative in managing your business.

  • 2 months ago

    As long as the business pays all taxes on the embezzled funds they can forgive it all they want and call it a gift.

    The embezzled funds must be accounted for the in business books and records. If the owner wants to forgive the embezzled funds, it's treated exactly like the owner took a distribution of that amount (and paid taxes on it) and made a cash gift to the person who took the funds.

    You can't just pretend it didn't happen.

    If it's treated as theft, including notifying the authorities and pressing charges, the business owner might not have to pay tax on the amount.

    It's amazing how fast someone's philosophy on this kind of thing will change the moment they realize it's going to cost them even more money. I've seen it many times.

  • Anonymous
    2 months ago

    Id want full repayment and I might use the courts to enforce it.

  • Rick
    Lv 7
    2 months ago

    not unusual NOT to press charges, but that family member will be reminded of that forever ...............

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  • Anonymous
    2 months ago

    "Forgive" is an emotion.

    "treated the same" is behavior.

    Two different things.

    It's not an either/or.

    People take whatever action they feel is appropriate and their emotions are up to them. 

  • Bill
    Lv 6
    2 months ago

    Forgive, but don't forget.  There is no normal reaction because the action isn't normal.    

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