Sir Robert Jones. Photo / Supplied
Sir Robert Jones says the $4 million High Court dispute he won against his former accountants this week was always going to go his way.
Sir Robert and a corporate trustee sued Sherwin Chan & Walshe (SCW) for failing to give the proper advice on the tax that would need
to be paid during a restructuring of Sir Robert's group trusts and companies in 2007, which included an Australian entity.
SCW discovered during an IRD audit in 2008 that it they had not considered how foreign-controlled company rules would impact the restructure. Sir Robert claimed he would not have proceeded with the plans if he had known it would have incurred the extra tax.
The accountants - who are now known as WHK New Zealand - admitted they erred by not properly informing Sir Robert, but did not believe they were liable for the final tax bill of $4.29 million.
Furthermore, they claimed in court the restructuring could actually give tax benefits of $5.6 million and argued Sir Robert's Tirohanga Family Trust had the opportunity to avoid the tax liability, but chose not to take it. SCW also contended that a good deal of the tax bill was the result of advice given by other accountants after the mistake was discovered.
