Tax / HMRC beats NT Advisors over £143m case at Court of Appeal

NT Advisors has lost its latest case in the Court of Appeal involving a disputed tax avoidance scheme using circular payments, making it the tax authority’s tenth successive win 

Audit / Audit risk: thinking outside the box

Concepts of risk, control, data and analysis are changing with potentially far reaching effects for audits of all sizes, particularly in light of plans for an overhaul of ISA 315, says Katharine Bagshaw FCA

Accounting / Pension Protection Fund considers transitional relief for first-time FRS 102 adoption

The Pension Protection Fund (PPF) is consulting on changes to the pension protection levy for 2017/18 to take account of the requirements of the new UK accounting standard, FRS 102, which may have an impact on elements of its insolvency risk measure that compares current and historic financials

Tax / Noonan claims Apple tax appeal could take four years

Ireland’s finance minister, Michael Noonan, has claimed that the appeal on the European Commission’s decision to recover £11bn in taxes from Apple could take up to four years but has strong advice that Ireland could win

Tax / Draft Northern Ireland corporation tax guidance published

HMRC has issued draft guidance outlining the technical application of the new 12.5% Northern Ireland rate of corporation tax, which is due to be introduced in April 2018

Accounting / European Commission endorses accounting amendments for investment entities

​The European Commission has endorsed amendments to IFRS 10 Consolidated Financial Statements, IFRS 12 Dis­clo­sure of Interests in Other Entities and IAS 28: Investment Entities - Applying the Consolidation Exception, affecting reporting rules for investment and non-investment entities

Audit / ICAS and FRC warn about audit skills gap

The skillset of auditors needs to develop to prevent an audit skills gap, if not the audit profession is in risk of becoming less relevant, according to a report by ICAS and the Financial Reporting Council (FRC)

Insight / Treasury to curb public sector exit payments

The Treasury is to reform the rules on public sector severance and redundancy payments, which it claims will save up to £250m per year, despite opposition from the majority of respondents to a consultation on the proposals held earlier this year

Insight / Company director in a pickle over tax fraud

A Birmingham company director, who claimed to run a business producing whisky, chutney and jam, has been sentenced to 31 months in prison after it was revealed it was a front for a £110,000 tax fraud

Insight / Fifty years to close gender pay gap, Deloitte says

The UK gender pay gap will not close for more than 50 years unless action is taken to tackle it now, according to research by Deloitte which suggests current inequalities between pay rates for men and women may not be eradicated before 2069

Technical Alerts

23 Sep 2016

Insight / What you need to know: gender pay reporting requirements

The introduction of gender pay reporting rules for companies with more than 250 employees from April 2017 are designed to improve transparency over salary disparity but they will also add to the administrative burden. Kathy Daniels, employment law author, considers the key implementation issues 

Tax / Germany to change business inheritance tax rules

A German parliamentary committee has reached agreement on plans to reform the country’s inheritance tax system, ending a two-year stalemate over new rules for people inheriting companies

Tax / HMRC sending personal Post-it notes to tax avoiders

HMRC has confirmed it has started sticking handwritten Post-it notes on letters to tax avoiders in a bid to 'nudge' them into paying up, and has recorded a ‘very high’ response rate, as the department expands its use of a range of behavioural psychology tactics to encourage greater compliance

Tax / OECD scopes out multilateral instrument for bilateral tax treaties

Plans to release a multilateral instrument to modify existing bilateral tax treaties and introduce an arbitration process for tax jurisdictions will be issued later this year by the OECD’s Base Erosion and Profit Shifting (BEPS) tax team, while 'sensitive' reform of permanent establishment rules is also set for consultation

Professional Development / People in the news: KPMG, FTI Consulting, Moore Thompson

This week’s people appointments include: a chief financial officer and head of operations appointment at KPMG, three partners leave KPMG to join FTI Consulting, Moore Thompson regains a former employee as a tax partner

Tax / Personal tax accounts hit five million mark

Less than one in five UK taxpayers have set up a personal tax account with HMRC since the launch of the online digital accounts in the UK, leaving 25 million outside the system

Insight / Calls for IASB chief to take pay cut

Hans Hoogervost, chair of the International Accounting Standards Board (IASB) is the latest high profile executive to come under fire over the size of his remuneration package, with a leading member of the European parliament’s economic affairs committee (ECON) calling for him to take a pay cut

Accounting / SEC proceedings against accountants double in US

The Securities and Exchange Commission (SEC) has seen a doubling of the number of proceedings brought against accountants in the past two years, up from 37 cases in fiscal year 2013 to 76 instances in 2015, and the upwards trend continues, according to the head of enforcement at the US regulator

Insight / Audit pays better than accounting at entry level

Auditing jobs pay more on average than jobs within the accounting sector, particularly at entry level with the salary for a trainee auditor being up to £36,000, according to research from Emolument.com

Practice Development / Majority of CFOs aim for top corporate jobs

A large number (86%) of chief financial officers (CFOs) in the UK have their sights on reaching the top and becoming CEOs at their current organisations, research has highlighted

Technical Alerts

22 Sep 2016

Accounting / BREAKING: Tesco trio plead not guilty to false accounting charges

The three senior Tesco directors charged with fraud over accounting misstatement at Tesco have pleaded not guilty to the charges in a hearing at Westminster Magistrates Court

Tax / Apple taxes, the EC and the future of BEPS

The European Commission’s ruling that Apple benefitted from Irish state aid over its preferential tax arrangements raises questions of sovereignty, says RSM head of transfer pricing Ken Almand

Tax / Leaked Bahamas tax files of offshore companies

The International Consortium of Investigative Journalists (ICIJ), which previously released the so-called ‘Panama Papers’ detailing offshore tax avoidance activity, has now published fresh information about offshore companies based in the Bahamas with the disclosure of 1.3m files

Accounting / What you need to know: executing documents using electronic signatures

Sophie Brookes, partner and professional support lawyer, Gateley plc explains the legal requirements behind electronic signatures used on documents, following recent guidance issued by The City of London Law Society

Tax / Hallam: VAT crucial to EU aim of tax harmonisation

The European Commission’s ruling that Ireland gave Apple state aid through a tax deal is indicative of a wider harmonisation of EU-wide tax policy, with VAT as a key plank of any reform proposals, says Nicholas Hallam, managing director of Accordance 

Tax / OECD BEPS tax avoidance plans fail to change tax approach

Nearly a year after release of the OECD Base Erosion and Profit Shifting (BEPS) anti tax avoidance action plan, which introduces changes to the treatment of interest deductibility and profit shifting, the majority of businesses have not changed their approach to tax compliance

Tax / One in three businesses unaware of apprenticeship levy

Over a third of businesses have not heard of the apprenticeship levy due to be introduced next year, finds research by the British Chambers of Commerce (BCC), which says there needs to be more government communication about the apprenticeship funding reforms

Tax / Law firm enters co-op agreement with transfer pricing firm

Law firm, Bird & Bird, has entered into a cooperation agreement with transfer pricing firm, Questro International, allowing the firms to serve multinational clients and offer corresponding European transfer pricing services

Tax / Lifetime ISA available from April 2017

HMRC has confirmed that the lifetime ISA, announced in Budget 2016, will be available from April 2017 for people under the age of 40, to help young people save for the long-term, particularly when buying a first home

Insight / KPMG drives administration at car dealership chain

Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings, which operate 13 new and approved used car dealerships across the Thames Valley and has collapsed with the loss of 267 jobs

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