I have a competitor who has, for a number of years, grossly overstated the stock on their balance sheet. I know this because I know their stock, I've been in their stock room and I'm very familiar with what it's all worth, as I'm dealing in the same products. They have stated, for years, that their stock has a value of ~£250,000 on their filed balance sheet. But I would estimate it at no more than £40,000. Question: 1. Is this affording them a tax advantage, or any other unfair advantage over my business? 2. Are they committing any sort of offence in misstating the value? I believe the reason they are in this position is because they probably did have £250k of stock 20 years ago, when the industry we are in was very different (it's declined over the years) but they have never done a proper stock take. When the accountants have drawn up the balance sheet annually they've just said, oh, the stock's similar to last year. And carried this on. Be interested in any feedback on this. Many thanks.