Case Studies

Individual, Property Industry

A client of a well-respected accountancy firm in Manchester approached Cobham Murphy for specific advice in respect of a property transaction. During the initial meeting, he revealed that his affairs were being investigated by the H M Revenue and Customs and that his accountant had advised him to agree a settlement with the Inspector amounting to £750,000. The investigation was being conducted under the Civil Investigation of Fraud procedures and a Report of Disclosures to the H M Revenue and Customs had been prepared.

John Green examined the accountants´ Report to the H M Revenue and Customs and advised that Cobham Murphy did not necessarily accept the findings and offered to negotiate settlement of the investigation with Investigators on a contingency basis. Cobham Murphy prepared a Disclosure Report and detailed negotiations took place with HMR&C. Eventually, the investigation was settled with a repayment being made by the HMR&C of £91,000, rather than a total payment of £750,000 being made to the Government, as suggested by the original accountants, resulting in a massive saving for the client.