Professional Negligence Claims Against Accountants

Robert Johnson and the Professional Negligence team at Healys act for a variety of clients against a variety of professionals on a variety of different types of claims. The professionals against which we most frequently pursue claims are solicitors, accountants, surveyors, architects and estate agents.

This article summarises the type of claims that we have pursued against accountants and financial advisors. We shall be publishing similar articles in respect of the other professionals in the coming weeks.
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Tax avoidance scheme

Claim against an accountant arising out of their failure to advise our clients properly or at all in relation to a tax avoidance scheme; to include (1) the appropriateness of the scheme for our clients; (2) the eligibility of our clients for the scheme; and (3) alternative means of mitigating tax/addressing the overpayment of dividends. This claim involved complex areas of taxation and law on the extent of duties owed/efficacy of exclusion and limitation clauses in the retainer.
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Tax implications for payments abroad‍

Claim against an accountant arising from their failure to advise our client properly or at all on the tax implications/consequences of payments from our client to a Maltese company and how such could (and should) have been avoided (or significantly reduced). This matter involved complex taxation issues regarding royalty payments and withholding tax and mitigation steps regarding corporate structure changes.
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Missing documentation

This claim arose out of inadequate performance of a supplier of VAT advice and related services which caused an (unnecessary) charge of VAT by the Luxembourg Tax Authority ("LTA"). The LTA disallowed all input tax that might otherwise have offset overall liability due to the advisor failing to (1) provide any (or adequate) documentary evidence with the form; and (2) respond to subsequent requests for such documentation by the LTA.
 

Valuation of a company

A claim against accountants instructed to value a limited company, a business partnership and other assets jointly owned by the client and her former husband. The negligence came to light several years after the divorce was concluded when the client was suddenly faced with having to purchase shares for a considerable fee from her ex-husband in a company which were totally worthless.
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SDLT mitigation scheme

This claim was against a tax advisor for advising the clients to enter into an SDLT mitigation scheme which later failed. The clients had already paid the advisor circa £17k as a success fee when they were contacted by HMRC and required to pay SDLT. This claim involved difficulties with issues of remoteness of loss.

Tax Liabilities and sale of property

Multiple professional negligence claims against an accountant firm and all of which arise out of or are connected with the advice provided to the clients (and/or entities with which they were/are connected) in relation to the mitigation of UK tax liabilities on the sale of investment property in the Docklands, London.

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Healys Professional Negligence Services

Healys professional negligence team have acted for clients against a range of professionals including solicitors, barristers, architects, surveyors, financial advisors and accountants, and have an outstanding reputation for gaining the best possible outcome. They are accredited and recommended by leading legal review bodies, including Legal 500 and Chambers & Partners.

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