Tax Management Company Problems

Jabbathegut

Hi Everyone,
Not sure if this is the correct forum for this but here goes (maybe the rip off forum would be better).
I was previously a contactor for 3 years before landing a full time job at the end of last year.
I setup a irish company to manage my contracting business and paid a management company to handle my company and personal tax affairs.
For years I enjoyed a good relationship with this management firm but lately things have started going sour.
My company was 'randomly' selected for a tax audit for financial year 2003. The management company now wants an extra €1000 to meet with the revenue guy eventhough I had paid them to handle all my tax affairs for 2003.
From my point of view this random tax audit should have been part of the service provided by my management firm since all my taxation records are with this firm and should NOT be chargable.
Something real fishy is going on here.
Any advice would be greatly appreciated

homeOwner

Well it depends - do you want to handle the audit yourself or do you want the company to deal with it?

You are entitled to deal with it yourself and you are entitled to get all the documents the management company has relating to your company for free - they belong to you. Revenue will deal with you unless they have questions that need explaining, they will go to the management company and ask them - and they cannot charge you for that! Revenue will demand answers from them - it is nothing to do with you, in the sense that you cant answer the questions.

Or you can get the management company to represent you to revenue and deal with it in which case you would have to pay them, but I think you will have to be there too being the owner of the company.

Dont pay them anything. Get your documents back from them and dont let them bully you. You should have copies of everything anyway. As director it is your responsbility to keep the documents or at least to be able to get access to them when you want from your accountant.

RainyDay

Jabbathegut wrote:

Hi Everyone,
Not sure if this is the correct forum for this but here goes (maybe the rip off forum would be better).
I was previously a contactor for 3 years before landing a full time job at the end of last year.
I setup a irish company to manage my contracting business and paid a management company to handle my company and personal tax affairs.
For years I enjoyed a good relationship with this management firm but lately things have started going sour.
My company was 'randomly' selected for a tax audit for financial year 2003. The management company now wants an extra €1000 to meet with the revenue guy eventhough I had paid them to handle all my tax affairs for 2003.
From my point of view this random tax audit should have been part of the service provided by my management firm since all my taxation records are with this firm and should NOT be chargable.
Something real fishy is going on here.
Any advice would be greatly appreciated

Why do you think there is something fishy going on? As an IT contractor, I'm sure you're familier with the concept that when the client asks for extra work, you expect them to pay for it. It's the same here - unless your original agreement with the mgmt company states that it covers any extra work arising from Revenue audits, then of course they are going to charge you for this work.

RicardoSmith

Were audits covered in your contract?

Jabbathegut

Hi everyone,

Thanks for the info. I have kept all my company records religiously. Problem is I had already paid these guys to manage my tax affairs so I assumed they would be answerable to their own work.

So I've decided to handle the audit myself (it aint worth €1000) and have requested copies of all relevent documentation to see if it matches mine.

Has anyone else experienced a VAT Tax audit meeting? what am I in for??