Your firm CAT partnership acts for Lion Ltd on corporation tax matters. The finance director at Lion Ltd has advised that additional VAT advisory work may also be available for your firm. Lion Ltd has recently received a statement from HMRC which states that corporation tax of 34,000 has been overpaid and the company has received a repayment equal to this amount. You have checked the HMRC corporation tax statement and realise that an error has been made and Lion Ltd has received the repayment from HMRC in error. Requirements I 1.1 Identify the threat to the fundamental principles that you face because of the implied VAT work, and one of the fundamental principles at threat. (2 marks) 1.2 Describe what action should be taken by your firm CAT partnership with regard to the overpayment made by HMRC. (5 marks) [Total: 7 marks]