Usual thing - two in a partnership have split. Lets just say its not been easy or friendly.
I have not prepared the partnership accs - another accountant did them.
Although the other acc has sent a copy of the partnership tax return to my client neither of us has received accounts.
When asked for them (by client - he wont speak to me) he said 'no' and to ask the other partner.
To get it all resolved my client is just agreeing to everything. Partners arent speaking in any event
Tax return has been submitted (I can tell as the other acc has not changed agents with HMRC)
I'm not going to complain as client is near a breakdown re the split in any case and the figures are in the low thousands - from copy bank statements at least the income fig looks OK.
Academic question is - although accs should be given to all partners is their any authority to do so?
Replies (3)
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Of course
Partnership Act 1890 section 28:
"28 Duty of partners to render accounts, &c.
Partners are bound to render true accounts and full information of all things affecting the partnership to any partner or his legal representatives."
Nightmare
These things are a nightmare for the accountant stuck in the middle. HMRC grants no concession to this situation, therefore it is a case of damned if you do - file the partnership tax return before the accounts have been agreed by all parties and damned if you don't- the late filing penalties clock up quickly and seem particularly unfair to the parties not involved in the dispute.
I am also unsure exactly what lengths a professional accountant has to go to in seeking approval from ex-partners who couldn't care less about the accounts.
Reasonable
Is this accountant regulated by somebody ?
If so, his professional body may be prepared to mediate.
Quoting the Partnership Act may help, too.
I agree that these disputes are a nightmare. Use what leverage you can. I don't feel that I need to be "polite" to uncooperative advisers.