Sometimes prof. advice may not be correct?

Investors in $2.2m row with IRD
The IRD found the change of use when it undertook a "routine tax audit" on the clients of Queenstown accountants McCulloch & Partners.
http://www.nzherald.co.nz/index.cfm?...ectID=10009940

Surprisingly, this hasn't been reported in the local ODT.

While only reporting one (possibly speculative) view, would you agree that it appears to be suggesting the accountants may have got it wrong?

My accountant got it seriously wrong. I had a trading account with one broker and an investment account with another to make it absolutely clear/transparent for them and the IRD, great move i thought, the right thing to do, relax and invest and do a little trading too with no issues. But my tax to pay started going up, it just didnt stack up despite a number of inquiries and discussions with my accountant.

They really worked at convincing me that they were treating my accounts correctly and put my fees up. My eyes tend to glaze over with these things but i knew something was wrong. I finally pulled the plug on these accountants and refused to pay the full fee(i had been given a much lower estimate early in the tax year).

To simplify,my new accountant who i know well thinks that my last accountant did a 2 year bright line test!!!? on all my shares including my 90% bigger investment portfoilio to save themselves alot of time yet charge me more and pay alot more tax. I dont know when they switched to this method but it looks like there have been other years where i overpayed as well but not as much. Got a feeling they started running out of time to get my accounts done(even though i had got them in earlier then ever). Awaiting a report back on this. Created alot of stress for me and the relief and joy when my new accountant (who is an absolute stickler) told me of my tax return ,will be remembered .

Quote:

Originally Posted by Joshuatree

To simplify,my new accountant who i know well thinks that my last accountant did a 2 year bright line test!!!? on all my shares .

I thought the bright line test only applies to property? Hmm that previous accountant of yours sounds dodgy.