Business Law Assignment: Analysis of a Negligence Case in Business Law

This business law assignment addresses a case of professional negligence involving a registered tax agent, Collin, and his clients, Annie and Ben. Collin provided incorrect tax calculation advice, leading to overpayment of taxes by Annie and Ben. The assignment analyzes the legal implications of Collin's actions, focusing on the principles of tort law, particularly negligence. It examines Collin's duty of care, the breach of that duty, and the resulting damages suffered by Annie and Ben. The analysis references the case of Mehjoo v Harben Bakers & Ors to illustrate relevant legal precedents. The assignment concludes that Annie and Ben can claim remedies for negligence under common law, seeking compensatory damages for their financial losses. The document also references relevant legislation and legal texts to support the arguments presented.

Business Law Assignment

Table of Contents
Question 1................................................................................................................................................................................................. 3
References................................................................................................................................................................................................. 5

Question 1
Collin was a registered tax agent and brother of Annie. Collin informed Annie thattheir business might be able to claim for
tax depreciation or deduction on the machine that they have purchased. Collin noted some figures and asked Annie to come
to his office for working out the exact calculation. Collin provided the recorded figures to a junior assistant and asked them
for calculating the depreciation amount for the machine. Collin was too busy to check the prepared calculationandadvised
Annie and Ben based on the same calculation. After a few years, it was found out that there was an error in the calculation
andAnnie and Ben has paid more tax than they actually1. Collin was approached by Annie for repaying the $35,000 that has
been overpaid. Collin refused to speak with Collin and Ben.
Case law
Mehjoo v Harben Bakers &Ors (Court of Appeal 2014)
It had been found by the court that duty for giving professional tax preparation advised could be incidental from a course of
conduct relating solely to routine general tax advice. There was a clear dissimilaritybetween specialist tax planning advice
and general tax extenuation. It was found by the Court that accountant could not sensibly aware regarding professional tax
minimization measures of the kind trusted upon2. There was also no reason for them to promote these issues with the
client.It was found by the Court of appeal that extent and scope of the retainer of an advisor were restricted to the terms of
their letter of engagement. While exclusions might occur, the Court was not ready for inferring that the duty of accountant
expanded to giving professional tax preparation advice, when this was not under their overall knowledge and the possibility
of their deposit.
Claim against Colin
1Linda L Edwards et al, Tort Law (Delmar Cengage Learning, 3rd ed, 2012).
2Casemine, "Mehjoo V Harben Barker (A Firm) &Anor | England And Wales Court Of Appeal (Civil Division) | Judgment | Law |
Casemine", Casemine.Com (Webpage, 2019) <https://www.casemine.com/judgement/uk/5b46f1ec2c94e0775e7ee295>.

The case cannot be considered as fraud though it can be seen as negligence3. Collin has not made any false and misleading
statement that can make him a fraud. Collin provided the figures to junior assistance for the calculation and after the
calculation, he did not find time to check whether it is correct or not. Without checking the calculation Collin advised
Annie and Ben based on the wrong calculation which leads them into trouble. Annie and Ben can claim for remedies under
the law of torts. The tort law is considered to be a legal rule which protects people from inappropriate acts of others. The
civil law is being violated when an individual commits a tort. The principles of tort law will be used for examining the
compensatory damages. The plaintiff should suffer due to the actual loss in the form or psychiatric or physical injury,
damages to property or economic losses. According to tort law, Collin is responsible for paying compensations for the
damages and losses to Annie and Ben. This law could help Annie and Ben in getting their legal damages and to get back in
the position in which they were before the error had happened. Annie and Ben can go to the court and file a case of
negligence against Collin and claim their remedies under common law of negligence or breach of contract. Former s 2015
and FBTAA former s 120 provides taxpayers to take necessary actions on the negligence of the registered tax agent. The
penalty provision of the Taxation Administration Act has been amended for providing safe platform to the clients of
registered tax agents4. An individual has the right to claim for the damages done to him or her due to the negligence act
carried out by any other organization or individual.
Collin was a registered tax agent he should have understood his responsibilities. Without checking the calculation Collin
advised Annie and Ben based on the wrong calculation which leads them trouble in balancing the book of their business.
Though this is not a fraud case a case of negligence. According to the law of torts Collin is responsible for paying the
remedies for the losses of Annie and Ben. However, the damages will be awarded to Annie and Ben after the discretion of
the court. There will be an evaluation of certain facts and circumstances of the case.
3Robert W Emerson, Business Law (Barrons Educational Series, 4th ed, 2016).
4Ewan MacIntyre, Business Law (Pearson Education Limited, 3rd ed, 2018).

References
Edwards, Linda L et al, Tort Law (Delmar Cengage Learning, 3rd ed, 2012)
Emerson, Robert W, Business Law (Barrons Educational Series, 4th ed, 2016)
MacIntyre, Ewan, Business Law (Pearson Education Limited, 3rd ed, 2018)
Casemine, "Mehjoo V Harben Barker (A Firm) &Anor | England And Wales Court Of Appeal (Civil Division) | Judgment |
Law | Casemine", Casemine.Com (Webpage, 2019)
<https://www.casemine.com/judgement/uk/5b46f1ec2c94e0775e7ee295>