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 the structure of their business. Specifically, they contended that they did not receive proper guidance on how to withdraw funds from their business, resulting in higher tax payments. In response to this claim, the Forensic team was engaged to assess the situation. They meticulously analyzed the contractual obligations of the defendant based on engagement letters and the standard responsibilities expected of a reasonably competent accountant. The teams report included comprehensive calculations of potential tax liabilities across various scenarios, including different methods of drawing 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 failings and the overall strength of the case against the accountants. The outcome not only resolved the dispute but also highlighted the value of expert analysis in navigating complex tax compliance issues.