Hello there,we used to own a small business which we wound down and sold in August 2010. Our company had been registered as LTD and LAQC and is no longer active.We currently live on my husbands salary, I am on unpaid parental leave with a new baby.We had paid an accountant to do our business income tax returns for the years ending 2009, 2010 and 2011.Even though the accountant did have all the relevant information about our company, he unbeknownst to us did not treat it as an LAQC and brought loss forward in the tax year ending 2010. This was now recently picked up by an IRD audit and we are faced with an income tax bill of $6000 ($5000 income tax and $1000 interest) for the year ending 2010. We are obviously shocked, as we believed the accountant would have done his job truthfully and all business matters would be closed.My questions to you are: Is there any way to hold the accountant responsible for his mistakes? Could we claim at least the $1000 in interest from him?Do you have any advice regarding the matter?Thank you for your timeKind regardsAnne
This is my first step in finding legal answers.
Hi Welcome to JustAnswer. My first response will follow shortly. Please feel free to follow up if anything is not clear
If a professional person has been negligent in carrying out instructions, they owe duty of care and if the breach of the duty of care causes losses, then the person is liable for the losses. In this case the interest was incurred because he did not apply the correct category for tax, and therefore would be liable. If you have to borrow to pay the tax he should pay the costs of borrowing
How can we make him liable? Is this done at the small claims court?
The first thing would be to challenge him and ask what he is going to do about the problem.
If he denies liability then the DisputesTribunal is the place to resolve this
LLB MMgt FAMINZ 32 years qualified as lawyer
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