I've been laid off in the following scenario.
I was employed as Chief Financial Officer of a business.
I discovered that the business had been systematically underpaying taxes by simply undereporting sales for multiple years (there was no tax scheme or other justification, just pure and simple under reporting of sales).
I advised the owners to resubmit corrected tax returns and pay up (there was no legally available alternative). I gave this advice in writing, clearly outlining the errors and refencing the related tax laws. (The advice was checked and agreed by appropriate advisors). The directors didn't like the advice as cash flows were tight and there was a potential that a tax audit might follow...potentially exposing those responsible to criminal action). They immediately began to treat me as if I was a threat to them.
2 weeks afterwards, without warning, I was laid off, escorted from the building, suffered immediate cutoff to company email and systems. No explanation given. No further communication. No chance of a reference.
My question is...how should I describe why I was laid off when asked by recruiters?.
According to Mark and Mike (and John Lucht) I should allow the company to "save face" and look like it made a good decision...whilst also painting me in a good light.
Any advice or ideas gladly received....
maybe these questions will
maybe these questions will help you to decide what is the best thing to do for you.
- That under reporting was a mistake or was intentional ?
- What was your thoughts about working for a company that does this ?
- Did you share with other employees the infos about the under reporting before or after speaking with the director ?
- Did you tell the tax authority of this under reporting when you discovered that the company wont resubmit correct tax returns and pay up ?
- Do you fill it is correct to tell the recruiter about the company name with the infos of the under reporting ?
HTH
Tough spot
You really have two decisions:
- Do you notify the appropriate regulatory agencies?
- How do you talk about the circumstances under which you left the firm?
If you have publicly made the charge through the appropriate regulatory agency, then you may be in a "Sherron Watkins" situation (the Enron whistleblower). In which case, you have the mantle of "whistleblower" and you have to discuss it.
If you felt that you lacked standing to go to the authorities, then you cannot tell recruiters or potential employers that they were acting inappropriately. That is, you can't have it both ways.
It doesn't really matter whether your former company was deceitful or incompetent or simply naive. You should consider documenting this in writing and asking your attorney to hold your letter. Just in case...
So what was it really? A disagreement on how to manage cash flow. You do have the right to stop short of details due to non-disclosure requirements. You can make it clear that the disagreement was fundamental, and that you were convinced their course of action was both fiscally imprudent and could potentially raise unnecessary problems during an audit.
Your actions so far seem right, and it's probably good that you're out of there.
John Hack
I would be surprised if
I would be surprised if under-reporting of sales for tax purposes was an innocent mistake, although it sure would be nice to have a record of other reporting of sales that were different.
That said, here's what I would do:
"We had fundamental disagreements about how to report accurately. I disagreed with their approach, and unfortunately couldn't have known about their approach before I started. As a C-Level executive, I was asked to leave, and in all good conscience I was glad. I couldn't have stayed had they chosen to disregard my recommendations."
Doesn't assign blame, and guards against less than great references.
Hope this helps!
Mark
Thankyou
Thankyou for all responses....helped with my thoughts a lot.
Mark your response was crisp and to the point and helpful.
In case you were wondering
(a) The under reported sales commenced years before I started and was clearly intentional.
(b) I took lawyers advice (described the errors and recommended solutions) and have therefore protected my position.
(c) I waited 2 weeks to give the company time to alert the tax authorities before alerting them myself.
(d) I'm glad I'm out of there.....I've got 4 job interviews lined up for next week...Mark I'll be using your recommended wording...thankyou...it helped.
Cheers
GH.