Accountant fined for submitting returns without consent

Kashflow logo
8

An accountant who submitted corporation tax returns and accounts for a former client without their permission has been fined £10,000 by the ICAEW and severely reprimanded.

In September 2004, Terence Veeder, of Edwards Veeder, Chapel Street in Salford, submitted corporation tax computations for Elite Communications UK to HMRC for the year ended 31 December 2002. The computations – submitted without permission from the director of the company, Mr Doogan, or his advisers H W Fisher & Co - included the surrender of losses under group relief, the ICAEW’s disciplinary committee heard in April.

When Veeder submitted the corporation tax computations he knew that Elite was wholly owned by Mr Doogan, who was a former client of Edward Veeder, and who was represented by other accountants.

Please Login or Register to read the full article

The full article is available to registered AccountingWEB.co.uk members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

Nick Huber
Freelance journalist
Share this content

Replies

Please login or register to join the discussion.

25th Jul 2012 11:58

Ouch!!!!

A couple of times I've only had formal authorisation to file on the day of the deadline, purely because of client inertia. In those circumstancs it's really tempting to submit them anyway, especially when i know the client is satisfied they are all correct. A £10,000 fine is a bit of a disincentive!

On the personal tax side I asked a client to confirm  some income which she eventually did towards the end of June. By the time the return was completed and submitted she had a zero tax bill, but £720 of penalties. Somewhere in her mind I'm sure she will blame me, but we can't create the numbers out of thin air.

Thanks (0)
avatar
25th Jul 2012 12:05

In situations like that I have submitted on thae basis of an email agreement from the client. It is fool hardy to submit without any agreement.

 

Thanks (0)
avatar
25th Jul 2012 14:39

Situations like that....

what when you file tax comps for companies that aren't your clients?

 

 

Thanks (0)
avatar
25th Jul 2012 15:01

I dont think that I would be filing tax for companies that aren't my clients. The main reason being I wouldnt get paid LOL! I was replying to the earlier comment re deadlines and I dont think I did it right. Oops

Thanks (0)
avatar
25th Jul 2012 15:23

Coy Secretary

Does being Company Secretary alter the position?

Thanks (0)
avatar
25th Jul 2012 16:16

Corporate clients

There must be more to this than the article suggests but I surely the client in this case was Elite Communications UK Ltd.

The ICAEW seem to have involved themselves in a dispute between Mr Doogan & Mrs Sawyer, where all the poor sap has actually done was submit the return on the authorisation of someone who at least at some point, was authorised to do so.

There but for the grace of the gods, go us all. I bet Mr Veeder has an email on file and as much good it did him. 

Thanks (0)
avatar
By tobri
01st Aug 2012 15:30

Mr Ahmedi was neither present in court or represented

What are the odds on the ICAEW collecting their costs of £2,850 ?  Do they normally go through the courts in cases like this?

Thanks (0)
avatar
By patara
18th Aug 2012 22:15

Commercial reality V Legal requirement

In this case the accountant should have known the situation with regard to his client and former client and the dispute between them.

In normal commercial situation would you stick to you guns to have the tax return signed before submitting it and incur heavy penalty for the client (although he may verbally tell you to submit it) or would you risk assess it and submit it with the full professional judgement that the return was correct based on the client's accounts and that in the case of serious error an amended tax return can be submitted.

Nihaal Singh

Thanks (0)