Comments on: Tax avoidance is bad for your image http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/ Richard Murphy on tax and corporate accountability Fri, 21 Nov 2008 12:23:43 +0000 http://wordpress.org/?v=2.6 By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-168041 Tax Research LLP Sun, 09 Sep 2007 12:52:20 +0000 http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-168041 Chris This was widespread practice considered smart by the profession for some time. I never advised a client to do it, ever, and would not have done. It's plainly abusive. But that was not on the horizon of these firms. Your problem though is in proving they were negligent: if what they did was commonplace and understood to be legal if unethical at the time they offered their advice then they may well not be liable in law, even if the Revenue subsequently proved the practice wrong and backdated the application of the ruling (as they have the right to do, since it can date from the time they began their legal action, not when it concluded). Of course they have a moral obligation to compensate you, but they showed themselves to be without moral conscience in recommending a sham in the first place. You may wish to consult a lawyer on this, but worry about throwing good money after bad: that's never a good idea. Richard Chris

This was widespread practice considered smart by the profession for some time. I never advised a client to do it, ever, and would not have done. It’s plainly abusive. But that was not on the horizon of these firms.

Your problem though is in proving they were negligent: if what they did was commonplace and understood to be legal if unethical at the time they offered their advice then they may well not be liable in law, even if the Revenue subsequently proved the practice wrong and backdated the application of the ruling (as they have the right to do, since it can date from the time they began their legal action, not when it concluded).

Of course they have a moral obligation to compensate you, but they showed themselves to be without moral conscience in recommending a sham in the first place. You may wish to consult a lawyer on this, but worry about throwing good money after bad: that’s never a good idea.

Richard

]]> By: Chris Mitchell http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-166921 Chris Mitchell Sat, 08 Sep 2007 11:38:05 +0000 http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-166921 Hello, tax avoidance schemes is an intersting concept which does appear by its very nature to have some moral implications. However as a lay person and not an accountant I recieved some advice approximately 7 years ago, the term avoidance was not used at this time. The advice by a large firm was to take out a partnership loan, pay the money into the company, get the tax relief and then borrow the money back from the company and pay of my mortgage. The revenue last yaer said this was illegal and I have now had to pay all the tax relief back and interest on top, plus suffered effectively the higher rate of interest on the business loan. My question is this as an accountancy firm that gave the advice, morrally would you agree taht they have a responsibilty in bearing these additonal costs that I suffered. If so how would you recommend that I tackle this? Any suggestions would be greatfully recieved. Hello, tax avoidance schemes is an intersting concept which does appear by its very nature to have some moral implications. However as a lay person and not an accountant I recieved some advice approximately 7 years ago, the term avoidance was not used at this time. The advice by a large firm was to take out a partnership loan, pay the money into the company, get the tax relief and then borrow the money back from the company and pay of my mortgage. The revenue last yaer said this was illegal and I have now had to pay all the tax relief back and interest on top, plus suffered effectively the higher rate of interest on the business loan.

My question is this as an accountancy firm that gave the advice, morrally would you agree taht they have a responsibilty in bearing these additonal costs that I suffered. If so how would you recommend that I tackle this?

Any suggestions would be greatfully recieved.

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-160439 Tax Research LLP Fri, 31 Aug 2007 16:19:11 +0000 http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-160439 Thanks Nick Appreciated Richard Thanks Nick

Appreciated

Richard

]]> By: nick james http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-160430 nick james Fri, 31 Aug 2007 16:07:53 +0000 http://www.taxresearch.org.uk/Blog/2007/08/30/tax-avoidance-is-bad-for-your-image/#comment-160430 100% SPOT ON! I don't agree with every word you write but your underlying principles are admirable - not something I've said to many fellow accountants. Nick James 100% SPOT ON! I don’t agree with every word you write but your underlying principles are admirable - not something I’ve said to many fellow accountants.

Nick James

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