Between a rock and a hard place?
A colleague has been placed in a ridiculous situation by a bent client and doesn’t know which way to deal with it so I hoped someone on here might know.
The brief facts are as follows -
- Client refused to register for VAT despite turnover of £140k per annum
- Estimate of VAT owed to HMRC to date about £40k
- Accountant refuses to continue acting for client
- Accountant then arrested as client has made false accusations that tax refunds not passed on to him by accountant.
- Accountant bailed while police check his evidence that he has in fact paid these refunds to the client.
- In the mean time if the accountant doesn’t file a money laundering report he commits an offence, but, when interviewed by police they told him if he did file a report he would be committing an act of witness intimidation.
It seems he is in an impossible situation and commits a criminal offence whichever route he takes. Has anyone any suggestions or come across this situation before?