Insight / Leveraging good corporate governance to attract investors

Companies that are well run and focus on corporate governance issues are more likely to attract investment, so when looking for investors, go armed with a detailed business model, analysis of the competition, details of the management team, financial track record and projected earnings, says Ben Cohen of UK Bond Network

Audit / Mitie set to end Deloitte audit after 30 year association

FTSE 250-listed strategic outsourcing and energy services company Mitie is set to end its 30-year association with its auditor Deloitte

Insight / Leyton Orient FC saved by consortium led by Dunkin' Donuts CEO

East London football club Leyton Orient has been taken over by Eagle Investments 2017 Ltd, headed up by Nigel Travis, chairman and CEO Dunkin’ Donuts

Tax / Number of buy-to-let properties available to rent shrinks

The UK has seen an 11.6% decline in the number of properties available to rent over the last six years, due to landlords selling their portfolios to avoid making a loss and changes in the way buy-to-let investments are taxed 

Tax / OECD consults on BEPS 7 guidance for attributing profits to PEs

The OECD has issued a consultation to guage feedback on additional guidance on the application of BEPS Action 7 Preventing the Artificial Avoidance of Permanent Establishment Status, which will be used as the framework rules to determine the attribution of profits to permanent establishments (PEs)

Insight / VAT fraudster to pay £40k or face jail

A London based hair specialist, who has previously appeared on television and radio giving hair loss advice, has received a suspended sentence for fraudulently claiming £37,872 in VAT repayments, and has been ordered to pay £40,000 in 28 days or face jail

Tax / Newcastle United FC disputes HMRC tax raid

Newcastle United FC has sought a judicial review to probe HMRC's seizure of tax documents from the club, which is set to be held from the 27 to 28 July

Insight / UK supercars stolen and shipped abroad in Thai tax scam

A tax avoidance scheme involving UK-based ‘supercars’ being stolen and transported to Thailand has been shut down by Thai investigators

Insight / People in the news: Mazars, Moore Stephens, ICAEW

In this week’s moves and appointments roundup, Mazars gains a financial planning partner, Moore Stephens hires a senior executive to strengthen research and development efforts and ICAEW  West Yorkshire and York appoints its youngest ever president 

Insight / FTSE 100 companies failing to report risks to shareholders

Only a third (32%) of FTSE 100 companies are providing ‘tangible’ metrics on risks or their mitigation within the strategic report, according to the Chartered Institute of Internal Auditors (CIIA)

Insight / Half of accountants stay at desk during lunch

Research has revealed that almost half (45%) of accounting professionals stay at their desk during lunch and 5% skip lunch altogether, with over half of finance professionals stating that long working hours would motivate them to leave their current role

Tax / Taxpayer has late filing penalty cancelled due to special circumstances

A taxpayer’s appeal against several late filing penalties from HMRC has been partly allowed, with the First Tier Tribunal cancelling a 12-month penalty due to special circumstances but ruled that there was no reasonable excuse for fling the tax return late

Tax / OECD consults on BEPS Action 10 detail on profit split treatment

As part of the Base Erosion and Profit Shifting (BEPS) project, the OECD has issued a call for comment on a discussion draft of additional guidance on Action 10 Profit Splits, designed to clarify the application of transfer pricing methods, in particular the transactional profit split method, for multinationals using global distribution and procurement networks

Tax / Deloitte alliance with Thomson Reuters integrates tax compliance software

Deloitte Tax LLP has signed an agreement with Thomson Reuters to combine its global tax technology and intelligence software with Deloitte’s direct and indirect tax services to help companies address increasingly complex regulatory and tax compliance issues for companies operating across multiple jurisdictions

Technical Alerts

22 Jun 2017

Insight / Economic trends: politics will slow debt repayment

The squeeze on day-to-day government spending and political pressures of a hung parliament mean the debt is unlikely to be paid down, says Institute for Fiscal Studies deputy director Carl Emmerson

Tax / Company car taxation – what you need to know

Constant changes to company car tax mean that anyone with responsibility for fleets or in possession of a company or salary sacrifice arrangement car needs to keep up to speed with the latest tax rules, warns Nigel Morris, motor sector specialist tax director at MHA Macintyre Hudson

Insight / Brexit and the Irish perspective: an exercise in uncertainty

A year since the Brexit vote, Mark Kennedy, managing partner of Mazars, takes stock of the ramifications for Irish business, financial services and agriculture examining border issues, company relocations and political uncertainty

Tax / SFO future appears safe after merger omitted from Queen’s Speech

The Serious Fraud Office’s (SFO) immediate future appears to be secure after references to a potential merger with the National Crime Agency (NCA) were left out of the Queen’s Speech

Tax / Select Committee on Finance Bill unlikely to convene before early July

Government plans to push through a summer Finance Bill before the parliamentary summer recess will come up against problems as there are no select committees in place following the general election so there is likely to be little time for proper scrutiny 

Insight / FCA to tighten up rules on pension transfers advice

The Financial Conduct Authority (FCA) is consulting on proposals to tighten up the rules on provision of advice relating to pension transfers where consumers have safeguarded benefits, primarily for transfers from defined benefit to defined contribution pension schemes

Tax / Global companies join US group for carbon tax introduction

Major global companies including BP, ExxonMobil and Unilever have joined a US group whose aim is to introduce a $40 (£31.60) tax on carbon emissions

Insight / Boris Becker bankrupt over £3m loan

Three-time Wimbledon champion Boris Becker has been declared bankrupt by a London Court over a multi-million pound historic debt

Tax / HMRC withdraws Electronic Data Interchange

HMRC is withdrawing its Electronic Data Interchange (EDI) channel and replacing it with an existing XML service, by April 2018, as part of its plans to align its PAYE services

Tax / Scotland to introduce Air Departure Tax from April 2018

The Air Departure Tax (Scotland) Bill, which replaces UK Air Passenger Duty, has been approved by Scottish parliament and will be introduced from April 2018, however the rates are not expected to be set until early September

Tax / HMRC collects record £5.1bn in inheritance tax

A record £5.1bn has been collected by HMRC through inheritance tax receipts this year, a 9% increase on 2016, reflecting growing property values and frozen threshold rates

Tax / EU proposes tax transparency rules for intermediaries

Intermediaries including accountants and tax advisers potentially face tough new transparency rules after the European Commission seeks to curb tax avoidance schemes

Audit / IAASA provides tips for Irish financial reporting

The Irish Auditing and Accounting Supervisory Authority (IAASA) has released a document for listed companies outlining tips on key issues, such as Brexit and incoming accounting standards, to include in financial reports, as the 30 June deadline for half-yearly reports approaches

Technical Alerts

21 Jun 2017

Tax / Double tax treaty passport scheme extended: tips and pitfalls

The recent move to extend the double tax treaty passport scheme to all types of borrowers and lenders, not just for transactions between corporates changes withholding tax rules, say Neville Wright, partner, Kelly Lovegrove, senior associate and Karen Hird, associate at DLA Piper

Tax / Queen’s Speech 2017: Finance Bill 2017 to go before ministers 'this summer'

The Finance Bill 2017 truncated by the snap election appears set to go before ministers following the resumption of parliament after the Queen’s Speech

Insight / Queen’s Speech 2017: eight Bills to support Brexit plans

The government has unveiled details on eight separate pieces of legislation that will implement the UK’s withdrawal from the EU, addressing issues around trade, immigration, agriculture, international sanctions, customs, nuclear safeguards and fisheries, including the Repeal Bill which transposes EU law into UK law

Tax / Queen's Speech 2017: government set to consult on social care plan

The government will go ahead with plans to overhaul the funding of social care with a consultation scheduled for the two-year parliamentary session but has not set out details about how this would work, the level of any cap or how much people would have to pay for care, reports Sara White

Tax / France and Germany mull plans for eurozone finance minister

The prospect of an finance minister and centralised fiscal budget for Eurozone countries has increased after German chancellor Angela Merkel said the proposal should be considered

Tax / ICAEW questions interest income self assessment threshold

The ICAEW is calling for clarification from HMRC for criteria for filing a self assessment return where savers earn £10,000 more before tax and income from share dividends is £10,000 before tax

Tax / HMRC P11D expenses filing deadline set for 6 July

With less than three weeks until the deadline for P11D and P11D(b) forms on 6 July, HMRC is warning that the employers need to ensure the forms are correct on first submission otherwise employees will be given the wrong tax code and may end up paying too much tax

Accounting / IASB to amend IAS 16 to reduce PPE reporting discrepancies

The International Accounting Standards Board (IASB) has proposed narrow scope amendments to IAS 16 Property, Plant and Equipment to reduce the diversity in application of the standard

Tax / HMRC updates tax calculation summary notes 2017

HMRC has revised the tax calculation summary notes (2017) to help individuals calculate the best way to use their personal tax allowance, including advice on accounting for dividends and residential property income under new rules

Tax / US House Speaker Ryan tries to save tax reform plans

US Speaker for the House of Representatives Paul Ryan has warned against any moves to water down sweeping changes to the country’s tax system

Tax / Pensioners pay £7,400 in tax each year

Nearly a third of retired household’s annual income is paid in tax to HMRC, equating to £7,400 a year, according to research by Prudential

Tax / British Virgin Islands make £12bn tax revenues for foreign governments

The British Virgin Islands (BVI), through global investment and trade, supports 2.2 million jobs worldwide, 150,000 of which are in the UK, and generates over $15bn (12bn) in tax revenues for governments around the world, according to research from Capital Economics

Insight / Third of major UK companies appoint head of digital

More than a third (35%) of the UK’s largest companies have a dedicated digital leader, compared to a global average of 19%, as the influence of data analytics and big data will change audit in the future with concerns that automation could affect judgment decisions

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