Okay heres the hypothetical situation:

Say you were to subcontract some one to undertake your tax work for X financial year and audit it 'yes I know there may be a conflict of interest here', and they undertake the work complete it and sign off on the audit.

Come the following year you decide to undertake the work internally and find that the hasnt been completed to a satisfactory condition and isnt compliant to the relevent tax legislation, also with figures dont match third party documentation 'i.e bank statements etc'.

Would you 'the company', be able to seek compensatory damages 'in the form of cash', to fix up all the mistakes?

To throw a spanner in the works of this hypothetical situation:

The cost of undertaking the work in the following year is doubled due to the amount of additional work needed to fix all the mistakes, 'would the subcontractor be able to use the retort 'I never undertook that work, I didnt charge for it, so I cant be held accountanble for it not being done?'.

Also what if the subcontractor was still undertaking the audit of the tax work, and you were in arears for the audit work already undertaken, could one seek to receive renumeration through this existing liability 'i.e. Charge the subcontractor for the additional work needed to be done, by offseting it against the money owed for work he has completed and not been paid for?

Looking at this hypothetical situation I was of the opinion that its easier to just pay out the outstanding monies owed to the subcontractor and look elsewhere, but others dont 'sigh'.

So I ask, what are the ramifications of going down the path of offseting the additional work that had to be undertaken against the monies owed to the subcontractor?

If someone has any legal precendents regarding the above hypothetical situation or could link to either specific or interpretive law it would greatly increase the validity of our presentation.

Note: I didnt fuck up here, I have to try to fix it

Wow u used hypothetically in every paragraph except one... I'm lost

Must be the word of the day.

nigga what the fuck are you talking about!

i not speaking your language.... not understand.

Edited tell me if it makes sense now.

Ive posted this on a few boards and dont want to get the typical responce that 'this isnt an advice board etc'.

This guy would know for sure

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I would speak to someone who deals with Taxation Law, There were changes last year in regard to mistakes & omissions.

My understanding is that any person you engage to resolve you taxation is an 'Agent' ( authorised to work on your behalf) not a subcontractor.

I have been dealing with errors in our family trust income tax in 2007/8 that was caused by an accountant's fuck up.

And the goal posts keep on getting moved.....Making it harder to resolve.

Excerpt from:

http://www.tabd.gov.au/pathway.asp?p...01/124/001/001

"Tax agent services legislation


Tax Agent Services (Transitional Provisions and Consequential Amendments) Bill 2009

The key elements of this Bill include:
transitional arrangements to allow tax agents and nominees registered under the current law to transition smoothly into the new regulatory regime, and similarly allow certain entities to be taken as registered business activity statement (BAS) agents under the new regime
amendments to introduce two ‘safe harbour’ provisions, which constitute key features of the new regulatory regime.

The safe harbour provisions exempt taxpayers who engage an agent from liability for an administrative penalty for certain mistakes and omissions where the error is solely due to the agent’s lack of reasonable care, and consequential amendments to existing legislation that will be necessary upon the enactment of the Tax Agent Services Act 2009, for example the repeal of the existing law relating to the registration of tax agents."

I would seek legal advice.

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Theory says you have to give him an opportunity to fix it himself first. Then you can have a crack at him to re coup costs.

Realistically he will tell you nothing is wrong and piss off. You will have to fix it and trying to get money out of him will simply be throwing good money after bad.

I would ask him to fix it, then cut him loose and continue to fix it yourself.

Are you talking about much time / effort / money? Dont tell me it is about the principle of the matter.

Brendon

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