An acquiantance approached to check if his current Accountant calculated his tax correctly. Did some workings and found out that though tax was correctly correctly, certain steps or methods could have saved him from being a 40% tax payer. He then asked us if we could take over as his Accountants and this where the pandora box opened. The acquiantance has 3 properties (mortgage free) commercial/residential mix which are actually in joint name with the wife. Interestingly the Accountant declared 100% income on the husband's name and submitted a separate tax return for the wife for a property she owns separately and 100%.
Implications: Husband would most likely become a non 40% tax payer after the income is split with wife.
Questions: We would now have to go back to disclose/amend the wife's and husband's tax return. I believe I would use DDS service to report the wife and pay the tax but how many years we go back and how do we get husband's tax returns amended and potentially get the 40% incorrect tax he paid?
Thank you for your time and help.