Court Cases Where Accountant Has Stolen Clients Tax Refund?

Court Cases Where Accountant Has Stolen Clients...

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Hi All,

I have a client who engaged the services of an accountant many years ago to file his sole trader tax returns. After charging over £3k for 3 years returns, the accountant received a refund of £6700 on behalf of my client. The accountant took the £3k charge from this refund but is refusing to pay the balance to my client. The refund was paid to the accountant in 2008!

Obviously, my client is furious. The old accountant is not responding to any letters but diverting everything through his solicitors. We are now looking at taking this to the small claims court but does anyone know if there are any cases where this has been done before?

TIA.

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By Roland195
15th May 2012 11:51

Unregulated

I assume this is an unregulated firm because all the CCAB institutes and I believe ATT/AAT also are incredibly strict with client account issues. I get the impression they are generally not thrilled by the deducting of legitimate fees from tax repayments in the first place and if this is being done the paperwork (written authorisations as well as the appropriate signatures on the Self Assesment Return) damn well better be in place.

If this is not the case, things get more difficult. I assume that the previous accountant is claiming that they are owed fees further to what has already been paid that equal the remaining £3,700. has anyone sent fee notes to show this?

 

 

 

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By bernard michael
15th May 2012 16:16

Don't mess around - go straight to the Small Claims Court . It costs peanuts and will force this ?????? accountant  to state any defence they may have however spurious. The judges pay little heed to people trying it on and judgmnent can then be enforced ASAP

Go Kill

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David Winch
By David Winch
15th May 2012 17:36

What are you alleging?

Are you alleging that the former accountant has STOLEN money belonging to the client (i.e. he is intending dishonestly retain it permanently)?

Or are you alleging that he is seriously dragging his feet in accounting for it to the client?

Or are you suggesting that perhaps he is simply unable to pay it to the client because it has been swallowed up by the accountant's own creditors / debts?

If you do suspect the former accountant has dishonestly stolen the money then you have an obligation to report to your MLRO / SOCA under s330 PoCA 2002 / MLR 2007.

David

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By lesley.barnes
16th May 2012 11:16

What is the accountants solicitors saying?

If everything is going through the accountants solicitors what are they saying about the repayment? The accountant received the refund 4 years ago so why has it taken your client so long to follow it up? I would do a bit more digging before going to court for your own peace of mind there may be more to it than the client is telling you.

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