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Accountant failed to submit appeal for client

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An accountant was criticised by a tax tribunal for not submitting his client’s appeal against a CGT assessment issued in 2013 – despite telling the client he had done so. 

 

8th Aug 2022
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Anthony Abiona repeatedly told his client, Barbara De’Roy Badejo, that he had submitted an appeal against a 2013 assessment for CGT and penalties within the 30-day time limit. But her accountant actually didn’t file the appeal until four years after the deadline. 

De’Roy Badejo was granted the right to appeal after the first tier tribunal (TC08527) heard how she only realised things were awry when HMRC informed her that it hadn’t received the appeal.

Abiona’s reliability had already come under question before the tax tribunal pointed fingers in his direction, after he was barred from FCA regulated activities in 2009.  

Four years too late

The taxpayer disposed of her buy-to-let property in the tax year 2005/06, but she caught the attention of HMRC after she failed to disclose the gain arising from disposal of that property in her tax return for that period. 

HMRC opened an enquiry and exchanged documents with her tax agent, Abiona, over the course of 2012 and 2013. The tax authority issued an assessment in August 2013, but it didn’t receive an appeal from Abiona until October 2017.  

Accountant to blame for significant delay

The taxpayer had good reason to believe Abiona had submitted the 2013 appeal within the time limit because he had repeatedly told her that he had done so. 

The tribunal highlighted evidence of emails where Abiona had assured her that  “The appeal was sent by post a while ago”. 

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Replies (10)

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By Hugo Fair
08th Aug 2022 13:00

Bit staggered at the lack of any conclusion here ...

* What happened to Anthony Abiona (previously barred from FCA regulated activities 13 years ago) ?

* What happened to Barbara De’Roy Badejo (have HMRC now considered the late appeal against the 2005/06 assessment)?

Without that information this is like a private 'naming & shaming' exercise - but missing the end!

[moderated]

Thanks (7)
Replying to Hugo Fair:
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By Dib
08th Aug 2022 13:32

Both good questions. Richard is obviously an accomplished story-teller leaving us in suspense for the next episode - a suspense account of sorts!

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Replying to Dib:
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By Paul Crowley
08th Aug 2022 17:59

Where are the Duff Duffs

Thanks (3)
Replying to Hugo Fair:
John Stokdyk, AccountingWEB head of insight
By John Stokdyk
08th Aug 2022 18:08

Thanks for your constructive comments, Hugo, but we had to moderate it to remove unproven allegations. There is something called the Defamation Act (not to mention contempt of court laws) that preclude publishers from commenting on live cases that could be considered by the courts.

The decisions published by courts and tribunals are privileged information under the act, so what we publish is limited to what is contained in those documents.

Calling the professional behaviour of other accountants into question is also against our community rules. Without the resources to substantiate such allegations, it would be irresponsible of us to publish them - including when they are in comments posted by our users. Sorry if this undermines the story as you see it.

Thanks (2)
Replying to John Stokdyk:
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By Hugo Fair
08th Aug 2022 20:12

I was unaware that this was a 'live case' (on which you as publishers are precluded from commenting) as opposed to case findings ... perhaps in future you might want to make that clear when appropriate before requesting comments.

But I think it's a bit rich suggesting that I'm breaking/bending(?) community rules by calling into question the professional behaviour of other accountants.

It's your (or rather Richard's) article that specifically says:
* "Anthony Abiona repeatedly told his client .. that he had submitted an appeal against a 2013 assessment for capital gains tax (CGT) and penalties within the 30-day time limit. But .. actually didn’t file the appeal until four years after the deadline."
* "Abiona’s reliability had already come under question before the tax tribunal pointed fingers in his direction."
* "The taxpayer had good reason to believe Abiona had submitted the 2013 appeal within the time limit because he had repeatedly told her that he had done so. The tribunal highlighted evidence of emails where Abiona had assured her that “the appeal was sent by post a while ago”. "
* "HMRC argued that the taxpayer should have changed her agent when it became apparent that he was failing in his duties."
* "The tribunal judge said that it was “not surprising” that Abiona hadn’t added any explanation for the delay in the 2017 appeal."

In short, although Abiona was not on trial or even formally accused of anything, your report paints a very clear description of the FTT's findings regarding his standards of behaviour during this sorry saga ... and these are not indicative of the professional behaviour I would expect of an accountant.

Believe it or not I don't set out to make your life difficult and would hope that the vast majority of my posts (as well as those that are plain fun) are helpful and/or supportive to other members ... but an inquisitive nature means that I note where a story appears to have been ducked or at least diluted.

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By Paul Crowley
08th Aug 2022 18:07

https://www.google.com/search?q=renbe+associate&rlz=1C1GCEA_enGB871GB871...

An 'accountant' not an accountant

'But De’Roy Badejo said that she stuck with her agent because she had already paid him and didn’t have any funds to pay for the same service again. Also he had all her records and he wasn’t forthcoming in providing them back.'

Refused to return records so unlikely to be regulated
Unless this is a joint ploy to finally do the thing that should have been done years ago

Thanks (3)
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By Mr J Andrews
09th Aug 2022 09:49

A joint ploy to fool the judge ? That's an interesting thought. I suppose it's a case of watching this space to see how De'Roy Badejo and Abiona get on - and if they continue to stick together.

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By David Gordon FCCA
09th Aug 2022 15:38

This is the problem with unregulated accountants.
There is no way of recompense except through civil litigation, which very few persons can afford.

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By David Gordon FCCA
09th Aug 2022 15:52

To continue
The issue is not in the missing of an Appeal. This, as we note, may be repaired.
The issue is according to AW's report, the person lied repeatedly to the client, causing the client potential financial loss.
Sadly, except for expensive private litigation, there is no recompense.

Thanks (1)
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By Catherine Newman
10th Aug 2022 18:36

Wouldn't a simple copy of the appeal proof that the appeal was even drafted? I don't have time to read such pie in the sky stories, hence my absence from Accountingweb-lack of time.

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