A Norfolk-based accountant has been severely reprimanded, excluded from membership of the ICAEW,  and ordered to pay costs of £55,645 for favouring one party over another in a dispute following a divorce.

Hands in board meeting

A tribunal of the Institute of Chartered Accountants in England and Wales (ICAEW) Disciplinary Committee found that Timothy Vogel FCA was in breach of the Code of Ethics. He did not deal fairly with both shareholders and directors, Mr 'C' and Ms 'D', in the following matters:

  • He assisted Ms 'D' in diverting the trade of 'A' Limited to 'E' Limited when he should have known this was to the detriment of Mr 'C' who owned half of 'A' Limited. In a separate disciplinary matter, it appears dormant accounts were filed for 'E' Limited when he knew those accounts did not reflect the transactions undertaken by the company in that period.
  • He accepted instructions to prepare financial statements for 'A' Limited from Ms 'D' when he knew she was in dispute with Mr 'C' and should have taken joint instruction.
  • He failed to provide a copy of 'A' Limited's accounts to Mr 'C' when he knew he was entitled as a director.
  • He provided Ms 'D' with ICAEW's confidential correspondence on a disciplinary matter to assist her in her response to a court matter involving Mr 'C'.
  • He communicated with an expert valuer appointed to act in the dispute between the two parties to make points that would favour Ms 'D'.

There were other breaches including failing to comply with an Order of the Disciplinary Committee in 2019, allowing his firm's client money bank account to be used to receive money and to make payments which were not the client's money in 2016, and preparing financial statements for 'A' Limited which did not comply with the Financial Reporting Standard for Smaller Entities (FRSSE) on a number of counts.

Useful guides on this topic

Divorce & Separation Toolkit
A summary of the tax implications which can arise on divorce and separation. A guide for subscribers. At a glance At a glance There is no general tax exemption for when a married couple or civil partners divorce or separate. A key issue is Capital...

Corporate Transparency and Register Reform:  Government response