errors in accounts

errors in accounts

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Client failed to notify us of a transfer of property from limited company to himself.

I discovered this whilst reviewing papers for tax investigation.

Capital gains tax due is about £100k plus the client needs to pay money to company for asset.

Client claims to have misunderstood.

I propose bringing in specialised firm to deal with revenue, but what is my position,

I am particularly concerned re other clients. Is revenue likely to investigate them?

Can the revenue refuse to accept accounts from an accountant who failed to pick up this error?

There was nothing in company books to suggest that any transaction had taken place and the solicitor

did not register the change at land registry for several months. It is not an audit client.

Thanks in anticpation
Anon

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By AnonymousUser
28th Mar 2006 14:44

UNKNOWN ERROR
From what you say you were unaware and as it was not an audit client you could not reasonably be expected to be aware of this transaction. Remember the onus is on the taxpayer, whether or not he was confused, if he did not make you aware or seek your advice it is a self inflicted wound!

As far as HM Revenue and Customs is concerned, although much maligned, they are nevertheless in our overall experience a very professional organisation and they would never prevent you submitting accounts to them because of an error by your client.

In fact if they had a problem with a firm of accountants i.e. consistent uncompliant numbers of taxpayers being advised by a particular firm they are more likely to commence an enquiry into that firm. That would however be an extreme situation.

I wouldn`t lose any sleep over it.

GRAHAM ASSOCIATES (INTERNATIONAL) LTD

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