Moe Daljit is the accountant for Valley Sales Company, which is currently experiencing a cash shortage because its Pacific Rim customers have not been paying their accounts on a timely basis. The owner has been unable to arrange adequate bank financing to cover the cash shortage and has suggested that Moe delay sending the amounts withheld from employees to the Receiver General for Canada for a few months, “until things clear up.” Then he adds, “After all, we will be sending the money to the Receiver General eventually.”

Required
1. What are the company’s responsibilities with respect to amounts withheld from employees’ wages and salaries?
2. What are the ethical factors in this situation?
3. Would you recommend that Moe follow the owner’s “suggestion”?
4. What alternatives might be available to the owner if Moe does not delay sending the amounts to the Receiver General for Canada?