Professional Services
FRP Advisory
Full Credential Description
A firm of accountants faced a claim of professional negligence regarding their tax compliance services. The claimants, owners of an engineering business, alleged that they had overpaid taxes for several years due to inadequate advice on the structure of their business. They contended that they did not receive proper guidance on how to withdraw funds from their business, resulting in higher tax payments.
In response, the Forensic Services team was engaged to assess the situation. They meticulously analyzed the contractual obligations of the accountants based on engagement letters and the standard of care expected from a reasonably competent accountant. The team's report included comprehensive calculations of potential tax liabilities across various scenarios, including different methods of withdrawing funds such as dividends, salaries, and pension contributions.
The submission of the preliminary report led to a settlement of the case. This report was instrumental in helping both the insurer and the insured comprehend the implications of the alleged shortcomings and the overall strength of the claim. The outcome not only resolved the dispute but also highlighted the value of precise analysis and expert advice in navigating complex tax-related issues.