You are absolutely right that should be the case and this person is not only making a mockery of the IVA process and those in it, but is also committing an offence. She is also very silly as this information is on record with HM Revenue and Customs so she could get into serious trouble.
For her sake I would advise her to come clean and speak to her IP before the IP finds out. Maybe if that did happen she would not be so smug.
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