Consulting
Frpadvisory
Full Credential Description
A firm of accountants faced a claim of professional negligence regarding their delivery of tax compliance . The claimants, owners of an engineering business, alleged that they had overpaid taxes for several years due to inadequate advice concerning their business structure. 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 team was engaged to analyze the situation. They examined the contractual obligations of the accountants based on engagement letters and assessed the responsibilities expected of a reasonably competent accountant. The teams report included detailed calculations of potential tax liabilities across various scenarios, including how funds were drawn from the business 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 failings and the overall strength of the claim. The outcome not only resolved the dispute but also highlighted the value of thorough analysis and expert advice in navigating complex tax-related issues.