I’ll break it down for you. First, it’s important to understand that personal statements are statements about your personal financial situation, not about you. A personal statement is a written document you give to other people about your financial situation. In other words, it’s not a personal statement about you.
Second, if you’re understating your income or claiming personal expenses as business expenses, this is a serious breach of the spirit of the law. Businesses do not have to use personal statements to make their financial statements; they just do so because it shows a better picture of them. Businesses, like everyone else, expect to be able to see their financial statements on their own websites.
It would be like you saying, “I have personal expenses but I only pay personal expenses, and I don’t have to disclose it as a business expense.” It doesn’t matter. That statement is a false impression of the situation, but it’s still the same false impression you’re trying to make.
It really is that simple.
Making financial statements that tell a story of your self is a great way to get yourself in trouble for not disclosing business expenses. If you do that and you make a personal statement that says, “I have $5,000 in personal expenses right now.” That should be enough to get you busted.