Who is Responsible?

[lostfish]

If there was a dispute between an entrepreneur who used the services of an accountant for nominee services who is ultimately responsible?

Let's say it was a setup with nominee shareholder and nominee director and the accountant did more or less what he pleased when he pleased. The entrepreneur cannot really say he has effective control of the company. The entrepreneur never signed off on accounts because the accountant didn't present him any to sign.

Then down the road the authorities start putting heat on the accountant and he decides to slope shoulders and attempt to backdate the documents to show he was never really in control, and put everything backdated in the entrepreneurs name.

Is this really possible and if so what recourse does the entrepreneur have?

 

[JohnLocke]

When nominees are appointed you always want to receive the declaration of trust and deed of indemnity documents so you at any time are able to show how has been in charge at any time of the company.

If it works in any court or legal action I doubt since it is obvious that the company has been in control of you regardless of which documents are in place. You will need a very good lawyer to help you in such matters.

However, to answer you question, yes that is possible and have been seen before. Normally most agent's won't reveal any beneficial owner data unless they get requested by court order, most accountant, lawyers and other corporate advisory services will keep your information safe.

 

[starfang]

You are responsible for what is going on in the company. As admin already touch pointed there is a declaration of trust and the deed of indemnity document that protects the nominee director and shareholder from any liability in any criminal or financial matters.

 

[lostfish]

What would this mean in practice? Would the authorities be more likely to just let it slide if the UBO was not a local?

 

[JohnLocke]

I don't think so. Authorities don't matter about costs so they will try whatever is possible to get access to the beneficial owner data and if positive sue the hell out of him/her. You really need someone you trust and someone that has power in his country (offshore jurisdiction) if you want to feel safe, that's not something you get cheap or should take for granted!

 

[lostfish]

First I heard that the tax office doesn't do a risk reward calculation when deciding whether to pursue a case

 

[JohnLocke]

They may do dending on the sitation, the amount owed to the tax office and depending on what country you are in. But most often if they think it is tax fraud it is not a matter of costs for them!

 

[MisterFree]

Its the entrepreneur's fault of course. Since he/she is the one who decided to use the service of an accountant after all. The accountant may be indecisive of his/her decision but its the entrepreneur's ultimate decision which I think he would follow first before the accountants decision.

 

[negon]

You will be responsible for any action you make in the company!

 

[Cyrus05]

Auric is right. In the first place, that thing or accident won't even happen if you didn't make that decision that could lead to a bad thing. Blame yourself for lacking the mental fortitude to actually choose the right decisions.