[Opinion] Responsibility of previous accountant to furnish supporting documentation

[dellatjie]

Good Morning guys,

I have a situation with a previous accountant:

I have taken over a client from her. The client asked me to handle his income tax affairs from 2014, and to enquire on some outstanding refunds from 2014.

The client's documentation was handed over by the previous accountant yesterday. After going through all the paperwork, I realised that she didn't provide me with tax type reports for the VAT201's, or any reports of her work done on Pastel.

I found her invoices issued to the client, and she specifically charged him for her posting work on Pastel.

I immediately contacted her to ask for either the pastel company or detailed ledgers of the general ledger, customers and suppliers, as well as her VAT reports.

She simply forwarded a trial balance for the year.

Is the client not entitled to the data, as he paid for the work done? I simply think it is not fair for the client to have to pay me for an entire year's work, when he has already paid the previous accountant. Furthermore, I am of the opinion that she should be able to support her figures in the VAT201?

This is the second time she has done this.

Is this normal procedure? Am I being unreasonable?

[Justloadit]

IMHO, the reason that your client moved accountant says something, either the previous accountant was too expensive, or simply not providing the service being paid for.

At this stage, the client should contact the previous accountant, and demand the necessary information and data, and if the previous accountant can or will not provide the required information, then your client should open up a case of fraud against the accountant, for charging for work not done.

[dellatjie]

@Justloadit - Are these not sufficient grounds for reporting her?

She has the following designations:
SAIT (SA), GTP (SA), Aff. F.M.I. (SA), MICBA (SA) CSBIcba (SA), SA-AA, and is registered as a tax practitioner.

According to the info available on tax practitioners on SARS's website, the following are grounds for reporting someone:
▫ Not registered as a practitioner
▫ Unprofessional conduct
▫ Unlawful conduct
▫ Not acting the taxpayer’s interest

[KimH]

@Dellatjie,

I have found myself in this situation once or twice as well. Some accountants/bookkeepers are just downright adamant about not handing files over to the new guy for either professional reasons or that the client still owes them money. My suggestion would be to contact the previous accountant and find out what the reason for not handing all files over are, if she point blank refuses to deal with you - then rather ask your client to apply pressure.
Good luck and let us know what happens.

[dellatjie]

Hi there!

You will not believe me, but she forwarded me her Pastel company today! I am so relieved.

Thank you guys!

[KimH]

Hi there!

You will not believe me, but she forwarded me her Pastel company today! I am so relieved.

Thank you guys!

[dellatjie]

It seems as if my battle is not over yet.

The abovementioned bookkeeper submitted a VAT return with a net result of 43 000 receivable, but her tax type report (which was submitted as supporting docs!!!) shows that the client has to pay 18 000...

I gave her a proper summary of the difference between the VAT201 and the Tax type report, but she simply will not reply to my mails.

Other than that, I am of the opinion that she advised the client incorrectly by advising him to register for VAT, when all he earns is commission - he receives a yearly IRP5 as well!!

Problem is, this client have already received several refunds during the last 6 months, as VAT was claimed on every expense even though it did not relate to "vatable" receipts.

What to do, oh what to do??