Surrey firm in £1.2m court action

Surrey firm in £1.2m court action

A Surrey accountant is being sued for £1.2m in a negligence action

Mervyn Smith, from Sutton in Surrey, trading as Mervyn Smith & Co, is
facing the claim from Duncan Rushmer, a businessman who faces losing his home
because of his financial problems.

Smith prepared audited accounts for Rushmer’s firm, Audio Visual Asset
Management, and at one point asserted the company had made a profit of £1.6m on
a turnover of just £1.5m, according to a High Court writ.

Rushmer says he was persuaded not to wind up the company because of cashflow
difficulties, as he intended, and that although he queried the large profits
shown by Smith, Smith assured him of their accuracy.

Rushmer increased his borrowings from the Royal Bank of Scotland, the Co-op
Bank, and First National Bank as a result of figures produced by Smith.

According to the writ, Smith breached his duty of care; failed to warn
Rushmer of substantial inaccuracies in the accounts; and knew that the context
in which Rushmer had discussed the accounts was his concern about its cashflow
and whether to wind down its activities.

Smith said this week: ‘I wouldn’t dream of discussing something in the press
which has no basis.’

Related Articles

Minimising taxable profits - the way forward for SMEs to reduce corporate tax bills

Corporate Tax Minimising taxable profits - the way forward for SMEs to reduce corporate tax bills

3m Chrissy Chiu
R&D tax relief claims are rising, HMRC report reveals

Corporate Tax R&D tax relief claims are rising, HMRC report reveals

5m Emanuela Hawker, Reporter
Appropriate tax systems – taxation in the ‘Fourth Industrial Revolution’

Corporate Tax Appropriate tax systems – taxation in the ‘Fourth Industrial Revolution’

6m Jane Mackay, Crowe
Watch out when winding up

Corporate Tax Watch out when winding up

10m Emma Rawson, ATT Technical Officer
How might Brexit affect UK tax policy?

Brexit & Economy How might Brexit affect UK tax policy?

10m Santhie Goundar
Corporation tax losses – your newly flexible friends

Corporate Tax Corporation tax losses – your newly flexible friends

1y Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

1y Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

1y Alia Shoaib, Reporter