There are consequences that a company will face when they do not file taxes or are dishonest. Find at least one case where a company did not file taxes or were dishonest. Summarize the case and discuss how the company's indiscretions will impact business in the future.

One case where a company did not file taxes or were dishonest was the case of the year 2013 that involved Ernst & Young (E&Y), a big four accounting firm. In the case, E&Y was held guilty for being dishonest and the charges that were leveled against it were developing, marketing, and defending tax avoidance schemes between 1999 and 2004 to dodge taxes worth $2bn faced by about 200 wealthy individuals.

This tax avoidance scandal was finally dealt with by E&Y ending up paying $123 million as a settlement with criminal prosecutors in the US. E&Y admitted to this act of tax avoidance by it and its four former employees were given a sentence of between 20 and 36 months in jail for involvement in tax evasion and obstructing the US Internal Revenue Service (IRS).

The company's indiscretions will have a negative impact on E&Y's business. E&Y is a service provider in the domain of tax, audit, and consultancy. This case of 2013 dented E&Y's image and goodwill to a large extent and the audit and tax major company lost few clients as well in the aftermath of this case. Since then E&Y has taken several steps to bolster its image by improving corporate governance levels.

Any negative mark against a company will affect the entire goodwill of the company. It may lead to shareholders' dissatisfaction and banks and other financial institutions may not provide loans and advances in case a misrepresentation has arisen against a company. It may lead to a lack of funds for operation and even lead to loss of business. 

Due to this reason, it is fair to obey government rules, unhealthy activities, especially in tax matters, should be avoided. Companies should put in mind that the company is responsible not only to the management but to the entire society at large