The contracts of all third Party investors had with Company A stated that the accountant would monitor all the VAT payments in the export programme. The accountant was aware of the use of their company name on the contact and in the publicity material. The directors of Company A also explained the role that accountant would play to reassure the investors that their money was safe, as all VAT payments in the export programme chain would be monitored. However, in one of the deals Company A was found guilty of MTIC fraud because HMRC ruled that Company A ought to have known about the fraudulent activity in the import/export chain they were involved in. The accountant now claims that although initially he said his company would monitor the export programme, in reality they only did this when problems arose. Can the accountant be held liable for the losses of these third party investors?
11th Apr 2012 13:32