Thank you. The accountant has now told me no copy of this supposed cheque is available.
I will definitely lodge an ACR regarding 35C(2) and explain the situation to the ATO.
While I don’t have evidence to show any breach of S.62 or S65, S84 etc., this transaction leaves me with doubt as to whether I have enough evidence to confirm compliance with those sections. 1.4 million left the account and I don’t know whether this was a personal withdrawal or not.
I don’t believe I have enough evidence, to state in Part B of the audit report, that I have sufficient evidence to confirm compliance with those sections…even though I haven’t obtained evidence to prove non-compliance. Would qualifying regarding these sections be valid in this case?
In the end, I will convey the issue to the ATO, and let them assess the issue.