dormant ltd company question

[Hauntedpsychic]

Can anyone tell me if the following is legal or possible tax evasion?
One person has 2 companies registered with companies house, company 1 is called "ABC LTD" and is registered as a
dormant company, company 2 is called xyz ltd and is registered as active.
ABC LTD is registered as a plumbing business & XYZ LTD is registered landscaping services.
My question is this -
ABC LTD advertises his plumbing services in local papers etc . (the company is registered as dormant??)
But XYZ LTD is the only company showing profit through companies house. This looks to me like the dormant company ABC LTD is in operation but the profits are being put through XYZ LTD. Both companies are owned by the same person , who is registered as director of both companies.
Is this legal or not as the profit is made by advertising and using the dormant company name. I thought that a dormant company could not trade or make profit ?

[ASB]

If abc is dormant then it cannot trade. Or basically have any transactions.

so it cant pay for its advertising. Or undertake any business. It could route it through xyz.

of course you have no genuine idea whether abc is dormant. All you actually know is that the last accounts file (which could relate to upto 21 months ago) indicate it was dormant at that point. Things change.

[Contreras]

If abc is dormant then it cannot trade. Or basically have any transactions.

I would go further and say that advertising services is by itself 'trading', even with no transactions.

Well, my accountant once told me that (for declaring my trading start date on the CT41 form).

[ASB]

I would go further and say that advertising services is by itself 'trading', even with no transactions.

Well, my accountant once told me that (for declaring my trading start date on the CT41 form).

I was pondering that. But I don't think the existence of the advertising itself makes it non dormant - unless ABC is paying for it of course.

The most likely course of events is ABC has simply ceased to be dormant recently and there is no way of knowing this from Co house submissions. It's not like you need permission to cease being dormant.