Conflict of interest

My accountant files all my company returns via ros.

I had a telephone call from my accountants secretary informing me that I had a vat claim and would I mind if they did not make my claim just yet.

I queried further and she reluctantly informed me that the company I had made such a large purchase from were also clients of theirs too and they had not made their return for the particular vat period that I have the claim for.

What does their late filing have to do with me?

nothing. their late filing is their problem, not yours. Advise accountant that you are very disturbed by the suggestion and that you will be reconsidering your arrangement with them.
You should also suggest that you may refer the suggestion to the Chartered Accountants Regulatory Board..

Kerrigan;

Be very slow to create issue for your accountant.
If generally he has been ok and you can (carry) filing for a month, I might not approve but see no major problem.
Stay aware of it and if it re-happens , quietly change accountants as you do not need to be dragged into someone elses issues.
amgd28, is correct in being disturbed but I suggest you use this as an orange light!
Next time it is red!

I'm amazed by the above 2 responses.

Assuming that the communication with the OP was made with the full knowledge and consent of their other client, their supplier, there is no inkling here that the accountant or their secretary has done anything unethical. Neither is there even a hint of a conflict of interest.

The information that the supplier has not yet paid VAT on a large sale to the OP is directly relevant to the OP's VAT claim, in that the refund may be interminably delayed by Revenue until the VAT return is made on the other side. If it happens that the other party defaults on the VAT, it could well transpire in time that the OP's refund claim could be rejected outright, or perhaps form the basis of a Revenue Audit of both parties. In that case, it would not be the accountant but Revenue who would "be dragging (the OP) into someone elses issues".

Would you prefer if the accountant had hid this fact from their client?

T McGibney said:

I'm amazed by the above 2 responses.

Assuming that the communication with the OP was made with the full knowledge and consent of their other client, their supplier, there is no inkling here that the accountant or their secretary has done anything unethical. Neither is there even a hint of a conflict of interest.

The information that the supplier has not yet paid VAT on a large sale to the OP is directly relevant to the OP's VAT claim, in that the refund may be interminably delayed by Revenue until the VAT return is made on the other side. If it happens that the other party defaults on the VAT, it could well transpire in time that the OP's refund claim could be rejected outright, or recovered if paid in the meantime. In that case, it would not be the accountant but Revenue who would (quite appropriately imho) "be dragging (the OP) into someone elses issues".

Would you prefer if the accountant had hid this fact from their client?

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Does this really happen?

I have never seen a situation where a refund has been delayed in this fashion.

My opinion would be that the accountant was completely out of order in asking the client to delay their return.

Will they pay the possible penalties incurred for a late return and host the possible revenue audit that ensues?

callybags said:

Does this really happen?

I have never seen a situation where a refund has been delayed in this fashion.

Click to expand...

It happens. And so do specific transaction-based Revenue audits.

callybags said:

My opinion would be that the accountant was completely out of order in asking the client to delay their return.

Click to expand...

Why? On the basis of the information provided above, it was merely a suggestion, which presumably the OP could accept or override.

T Mc Gibney;

You were {amazed} at my posting?

I accept your obvious better knowledge of Vat returns.

You may well be technically correct in your response, but I got the feeling (maybe wrongly) that Kerrigan was being put upon a little bit.

I suppose it is just I would be uncomfortable if it was me !
As you say , it is Kerrigans call and if everyone is in the loop etc there should be no harm.

My suppliers have still not made their returns so I insisted the accountant filed my return before I am issued with penalities. Begrudginingly this was done.

I was asked by the Rev to issue a copy of the purchase invoice which I did. I have still not received the claim and this has been weeks ago. It looks like I wont be receiving a dime until the supplier makes a return.

I have contacted the Rev and they have avoided making a payment to me so far. I feel like I am being fobbed off and the can being kicked down the road. I have now been asked for a mammoth amount of paperwork regarding the transaction. From this end it seems like I am the one being investigated.

Kerrigan, it might look/feel like you are the one being investigated but did you consider that revenue may be using you to obtain information on your supplier. I have seen this done in the past.

You have done nothing wrong, you filed valid return, provided revenue with info requested to back up return, your accountant suspected this would happen and was trying to avoid you making claim until your suppliers end was sorted just to make life easier for them. this is not your problem.

Question to be asking Revenue:
Why if you have provided Revenue with a valid VAT invoice and proof of payment of said invoice why are revenue retaining your refund?
If you & supplier did not have same accountant would this be happening?

Hi Shinners,

The supplier has since filled their return but I have still heard nothing. I have also asked why not and have still heard nothing.

It is starting to effect cash flow.

Revenue are probably now busy investigating your suppliers vat return . what vat period does this refund relate to?