Question 5 Horace and his wife Hermione are owed 225,000 by a company called Snape Testing Ltd. They ran a small partnership and supplied materials to Snape Testing Ltd, the company has refused to pay the amount owed and Horace and Hermione have initiated a court action to recover the monies outstanding to them. Grimwald Pharma PLC is the parent company of Snape Testing Ltd and has recently been advised by its accountants that it could reduce its tax liability for the year 2020-2021 by removing all the assets from Snape Testing Ltd and closing it down. Grimwald Pharma PLC has decided to follow that advice. Requirement In light of recent case law, discuss the implications of this decision for Horace and Hermione and explain with authority, the reasoning behind your advice. Total 25 Marks Question 5 Horace and his wife Hermione are owed 225,000 by a company called Snape Testing Ltd. They ran a small partnership and supplied materials to Snape Testing Ltd, the company has refused to pay the amount owed and Horace and Hermione have initiated a court action to recover the monies outstanding to them. Grimwald Pharma PLC is the parent company of Snape Testing Ltd and has recently been advised by its accountants that it could reduce its tax liability for the year 2020-2021 by removing all the assets from Snape Testing Ltd and closing it down. Grimwald Pharma PLC has decided to follow that advice. Requirement In light of recent case law, discuss the implications of this decision for Horace and Hermione and explain with authority, the reasoning behind your advice. Total 25 Marks