The Tribunal found that between July 2005 and March 2008 Mr Rice had failed to inform his client, the complainant, of an offer by HMRC to contribute to costs incurred by the client. The client had become liable for considerable fees as a result of seeking advice on ways of countering an HMRC inquiry relating to settlement provisions. However, HMRC subsequently dropped that particular line of inquiry and, following correspondence between the member and various HMRC offices, wrote to the member agreeing to make a contribution towards the professional fees caused by their errors and delays. The Tribunal found that Mr Rice had failed to inform his client of the contents of that letter from HMRC, leaving him with the mistaken impression that a large proportion of the costs would be recovered from HMRC. The Tribunal considered that by so doing, the member had failed in his professional duty to his client.
The Tribunal decided that Mr Rice should receive a censure on the charge that was found against him and pay a fine of £8,000. He was also ordered to pay costs in the sum of £5,932.72.
