Readers' forum: Professional obligations

I have recently taken over a client from a smaller general practice firm of accountants. On reviewing her returns for the past few years I have seen that her previous advisers have made a mistake in the way that they have allowed double tax relief. Relief has been claimed in full on dividends from countries where the double tax treaty only permits relief of 15%. This is similar to the situation in Cooke (TC6239).

There is no doubt that the returns are incorrect – this is obvious from the face of the returns themselves and no additional information was required to establish this. I am considering my professional obligations here and would appreciate Taxation readers’ views.

In the normal course of events it is clear what I have to do when there is an error. I need to inform my client of the error ask her for permission...