Tax / Criminal Finances Bill: corporate liability rules net accountants

Companies need to tighten prevention procedures to avoid falling foul of ‘relevant person’ rules in the Criminal Finances Act, particularly when it comes to potential breaches of tax rules. Kevin Hindley, managing director of Alvarez & Marsal Taxand says it is important to establish a robust framework to de-risk from potential prosecution under these provisions

Audit / Editor's comment: ethics takes back seat in eyes of audit inspectors

The opaque world of limited liability partnerships may be set for a period of greater scrutiny with a spate of audit scandals rocking firms and a fairly dismissal level of adherence to acceptable ethical standards in the latest audit quality inspection (AQI) round, says Sara White, editor of Accountancy

Tax / Fourth Anti-Money Laundering Directive: what you need to know

From changes to politically exposed persons (PEP) to beneficial ownership registers, the newly enforceable Fourth Anti-Money Laundering Directive (4MLD) will force a due diligence rethink, warn Lisa Osofsky, managing director and Sarah Adenaike of Exiger LLC

Tax / Changes at the top for Crowe Clark Whitehill

Managing partner of Crowe Clark Whitehill’s London office Nigel Bostock is set to become the firm’s chief executive as current incumbent David Mellor hands over the reins

Insight / Changes to UK anti-money laundering rules hit PSC regime

Due to the EU’s Fourth Money Laundering Directive being implemented into UK law, significant changes must be made to the people with significant control (PSC) register. Gateley law experts, Sophie Brookes and Christopher Davies, explain how companies will be affected by the new rules, which come into force on 26 June

Tax / HMRC working to fix online self assessment filing errors

HMRC has confirmed that it is currently looking at options to fix errors which have arisen for certain taxpayers when submitting self assessment forms online, resulting in individuals with specific tax codes having to file returns on paper, reports Amy Austin

Tax / Complex cases push down HMRC's tax investigation yield

HMRC’s yield from investigations has fallen 10%, from £73 for every £1 spent in 2014/15 to £66 in 2015/16, according to law firm Pinsent Masons

Insight / PSC regime updated as EU money laundering rules come into effect

Accountants will need to carry out more stringent checks against clients and financiers, and face new company ‘rightholder’ rules, as the EU’s Fourth Money Laundering Directive is introduced today

Insight / NAO slams government over ‘risky’ and ‘expensive’ Hinkley project

The government’s deal to construct nuclear power station Hinkley Point C has locked the public into a ‘risky and expensive project with uncertain strategic and economic benefits’, according to National Audit Office (NAO) head Amyas Morse

Insight / Arthur Andersen & Co heading to court

US firm Andersen Tax and its CEO Mark Vorsatz could face the French courts, after a summons was issued against it by French firm Arthur Andersen & Co, alleging its rival has committed forgery to stake claim to ‘Andersen’

Tax / Individuals' tax relief required for Making Tax Digital software costs

Failing to provide tax relief for individual taxpayers buying Making Tax Digital software is ‘manifestly unjust’, according to RSM senior tax partner George Bull, as tax relief will be made available to businesses 

23 Jun 2017

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