2021 Worst Accountants Ever – Case 1

A Papakura panel beater and painter came to us via recommendation. The owner hired staff who were incompetent to run his business. With matrimonial problems and very poor guidance the business was near collapse.

They had had a succession of “accountants” in my view untrained bookkeepers. They did use a Manurewa based accounting business, they have no web site and a generic email.

This business prepared accounts and GST. No reporting to the client was made. The client never saw GST returns filed. Accounts were prepare without formal engagement and terms. The business then charged what it liked, when it liked. FALC engaged and the accounting business refused to hand over accounts, demanding payment of unjustifiable fees. These were never paid.

That business prepared accounts for the 2020 year and a year to date up date in Sept 20. The update was for bank lending purposes.

No allowance was made for accuracy of balances, assets on hand or the massive PAYE and GST debt. No disclosure to the bank was made and this is fraud.

IRD then served a statutory demand for over $200000.00 in debt and penalties.

FALC successfully engaged with Inland Revenue, submitted a number of legal submissions and amended the accounts and GST from 01 April 2019 to 31 March 2021. A payment proposal was lodged and accepted by Inland Revenue and the proceedings were ceased.

The client then decided after some time to reduce costs and go back to “his old ways” as observed by Inland Revenue. The now former client now faces one and a half years GST investigations.