Accounting and law firms clash over HMRC investigation

CHRISTOPHER LUNN & Co, a Sussex-based accountancy firm, has threatened to sue a law firm as part of a dispute with HM Revenue & Customs (HMRC).

Last year, CLAC said that HMRC refused to deal with tax returns it filed online, after tax officials visited the firm’s office as part of an investigation and seized files.

CLAC, which specialises in the media sector, is seeking to overturn the HMRC decision in the High Court. CLAC has described the taxman’s decision as “extraordinary”.

Earlier this week, the dispute took a fresh twist after a law firm, Bark & Co, said it would represent disgruntled clients of CLAC, who want to claim damages from the firm to compensate for any disruption to their tax affairs.

In a press release published earlier this week, Bark & Co said it would hold a public meeting with CLAC clients this month to advise them on possible legal action.

A spokesman for CLAC claimed that Bark & Co had made “defamatory and inaccurate statements”, and said it had contacted the law firm to demand that it withdraws and corrects any false statements.

A spokesman for Bark & Co denied that its public statements about CLAC were defamatory, and said that it was offering CLAC clients a legal service. He added that his firm had been approached by a couple of CLAC clients about the possibility of taking legal action.

HMRC was unavailable for comment.