In 1989 I started running my business from home, trading as Norman’s Panelshop, specialising in panel beating and spray painting.
I knew from advice given to me that I was liable to pay tax to South African Revenue Services and therefore employed Mr. Van Niekerk as my accountant. In the year 2000 the business started running at a loss and in order to cut down on expenses, I terminated the services of Mr. Van Niekerk on 12 September 2000 (see attachment).
In that same year, my daughter Carmen completed the National Diploma in Financial Management Course at Cape College and I felt it would be to my advantage if she would attend to my tax affairs as I would save on Accounting Fees. Carmen completed and submitted Income Tax Returns for the periods 2000 to 2004, but due to her lack of practical experience I ended up in court with SARS for late/non rendition of returns, for outstanding payments and for high assessments for these periods. This experience as well as the monies due to SARS made me realise the urgency in hiring another accountant and therefore making the sacrifice of paying accounting fees again.
My daughter recommended Mr. R.A Wilson whom she knew in a work environment to be a skilled, professional and a qualified tax practitioner that had years of experience. On this merit and meeting with Mr. Wilson I appointed him as my accountant on 15 October 2004 (see attachment). His main function would be to “check and amend” the income tax returns that Carmen had submitted (2000 – 2004) and then also to attend to current tax affairs.
I provided Mr. Wilson with all the documentation he requested and he assured me that he would attend to these matters. On numerous occasions I would contact Mr. Wilson telephonically to get an update on my tax status and he would always assure that all is in order. I would also forward him any correspondence I received from SARS via facsimile as soon as I was in receipt of same and followed up with a telephone call a few days later. He would always respond that he was “On Top” of things and there was no need to worry. I also requested updates via email and Carmen also popped in at his office time and again to request feedback. I also forwarded payments to Mr Wilson, before being invoiced, which he would accept.
As time passed the correspondence from SARS became more urgent and eventually ended up in me receiving a phone call stating that I was liable to pay R50000.00 (Fifty thousand Rand) within 7 days. Needless to say this was a huge shock and I immediately made a bee line to SARS office. It was brought to my attention by the consultant that there was no communication between Mr. Wilson and SARS ever. This I could not fathom as Mr. Wilson always confirmed that he was attending to matters. The SARS consultant also made it clear that although my circumstances unfortunate with Mr. Wilson, I was held responsible for my tax status and the consequences of non payment. This resulted in me drawing the funds from my bond in order to settle the amount with SARS as I had no other alternative as I did not earn this kind of money. I took this bill to Mr. Wilson and explained my position, his response was “Oh, I must look into this; they must give your money back to you”.
A while later more bills started arriving from SARS. I was now devastated and started having sleepless nights, as I have employee’s dependant on me and I am the sole breadwinner of our family. I started seeking advice from friends and family and was introduced to a bookkeeper by a friend. My new bookkeeper immediately took me to SARS requesting my tax status with a consultant. And the following was brought to my attention:
Mr. Wilson had not been attending to my tax affairs as he said he was
Mr. Wilson only made correspondence with SARS and submitted my returns on 13 June 2008 (See Attached)
Mr. Wilson was unable then to re-assess 2000 to 2004 as he communicated with SARS to late
A great deal of tax liabilities derived from penalties for late/non rendition and interest upon interest (See Attached)
Mr. Wilson was not corresponding with SARS timeously.
Since the appointment of the new bookkeeper, he has managed to get my tax affairs up to date and I was liable to pay an extra R30000.00 (thirty thousand Rand) due to Mr. Wilson’s negligence.
I have since made a formal complaint to Mr. RA Wilson via Electronic Mail (see attached), requesting re-imbursement for some of the loss I have incurred. He responded via registered post (see attached) requesting certain documentation. I immediately provided him with all the requested documents via registered mail (see attached) and he has failed to respond.
I have also lodged a complaint with the South African Institute of Professional Accountants (SAIPA), as per his designation on his letterheads, only to find out that he has ceased membership in 2002, therefore they were unable to assist. They are only able to follow up and find out why he still uses this designation on his company stationery when he is no longer a member, as this is misrepresentation.
I am a small business man employing between 1 and 3 employees at a time, I rely on the man in the street to support me as the Insurance Companies refuse to. This financial stress, in an already struggling economy is resulting in continuous sleepless nights, as I am afraid of losing my property, which is both my home and place of business where I derive an income from, due to the poor service from Mr. Wilson.
I now find myself in a position where I need to claim full compensation from Mr. Wilson, i.e.:
Tarnishing my Reputation with SARS
Penalties
Interest
Misrepresentation and misleading information
Time off from work
Cost of Extra Accountant
Stress
Loans
I therefore appeal to you as a professional body to look into this matter. I will respect your assistance and decision in this matter.
Yours sincerely
NORMAN PARKER