A retailer has an accountant employed to prepare accounts from scratch.A revenue audit claims that the Vat was calculated incorecctly.The retailer has supplied all documentation to his accountant so who is responsible?
The accountant used the retail mark up scheme and according to revenue website the Epos system should always be used if client has an Epos.
In this case an Epos system is in place for 15 years.
3. Who may use the Schemes?
The schemes may be used only by retailers who:
sell goods chargeable at two or more VAT rates, and
do not have facilities for segregating receipts at point of sale into the different rates and cannot reasonably be expected to do so (see Electronic point of sale (EPOS)/Scanning equipment below)
4. Who may NOT use the Schemes?
The Schemes may not be used in the following circumstances:
Where a retailer uses Electronic Point of Sale (EPOS) equipment capable of accurately recording sales at the various applicable VAT rates
The accountant used the retail mark up scheme and according to revenue website the Epos system should always be used if client has an Epos.
In this case an Epos system is in place for 15 years.
I understand the retailer is ultimately liable.As the accountant used the scheme system when a good Epos is in situ for many years what can the retailer do?
Yes a significant sum going back some years.
What does your accountant say? My view is you hired him to do a job, that's after all why you hire professionals, and he clearly didn't do the job correctly resulting in a loss to you so he's the one at fault. We all know people can make mistakes but this seems rather more than that and I assume the accountant has professional insurance to cover this. Though I'm not sure on that.
Did the retailer communicate to the accountant that they had an effective EPOS system in place? If not, why not?
Even if they did, why did the retailer, for a full 15 years, choose not to utilise the basic function of their own EPOS system in relation to the capture of sales VAT data at the various applicable VAT rates?
Yes the accountant was fully aware of the Epos system.
Full details of the Epos system were captured and given to the accountant.The accountant looked after Paye,Vat,Income tax.The entire accounting system was outsourced.