The Way it Works

By

Broganrogantrevinoandhogan says: July 11, 2014 at 7:30 am 71 0 Rate …

Comment on The Way it Works by essexbeancounter.

broganrogantrevinoandhogan says:
July 11, 2014 at 7:30 am
71 0 Rate This

Good Morning.

THE WAY IT WORKS

When you sit down with a firm of accountants who specialise in aggressive tax avoidance schemes such as an EBT scheme or a DOS scheme, one of the things that are spelt out to you is that the scheme you are about to embark upon may well be, indeed is likely to be, challenged in a court of law. Especially if you do not administer it to the letter.
=====================================================================
BRTH…superbly succinct post and a model of clarity for all.

Whilst totally opposed to the “aggressive” tax avoidance schemes, my firm does promote some lower level/lower risk schemes, all of them “non-DOTAS” versions (Disclosure of Tax Avoidance Schemes – a box which taxpayers must tick on their tax returns if using such a scheme)

As BRTH mentions, great time and effort is expended by accountants to ensure that the client is fully aware of the potential outcome(s) should HMRC challenge the scheme, and that part of the related scheme fees include an element of insurance against legal fees. It would beggar belief that Murray (David) had not been made fully aware of the risks…and he managed those risks appallingly badly, hence the demise of RFC.

As in the case of all so called “professionals”, the accounts and lawyers associated with these schemes have their backsides well and truly covered.

Finally, I can assure readers of this glorious blog that EBTs are still a common tool in the armoury of the “Tax Mitigation Industry” (“TMI” for Paulsatim!) and that no matter how morally repugnant, they are, sadly, not illegal, if administered to the letter of the law.

essexbeancounter Also Commented

The Way it Works
StevieBC says:
July 22, 2014 at 5:50 pm
6 0 Rate This

wottpi says:
July 22, 2014 at 5:39 pm

However I believe to story is totally different for accountants
===============================================
Since I can tell you are keen to read an accountancy body’s regulations on Conduct & Oversight… 😕

“Bankruptcy

Bankruptcy should not of itself affect membership or student registration. A member or student who is declared bankrupt is required however to notify the Institute, and should continue to act professionally within the Laws of the Institute, including the Code of Ethics…”
http://www.cimaglobal.com/Members/Members-handbook/Conduct-and-oversight/
=================================================================
Stevie and others…I can assure all that the moment a sniff of the word “bankrupt” hits the nostrils of my beloved ICAS regulators, a man from ICAS will be despatched, at my expense, to camp on my doorstep, with my resignation already written, and a pen at the ready for me to sign.
This also applies to ICAEW and ACCA…!


The Way it Works
scapaflow says:
July 20, 2014 at 3:53 pm
14 0 Rate This

essexbeancounter says:
July 20, 2014 at 3:46 pm

Actually its a pretty good summary of just how broken UK PLC is, and, why many countries look on the City of London as little more than a banana republic with a great Opera Company.
===========================================================
Scapa…whilst agreeing with your sentiments entirely, many countries do not look upon UK Plc as a “banana republic” but as one of the safest and best regulated tax havens on the planet…and that is the underlying concept which drives the current City of London as an offshore business centre…hey, hold on, is this not where we all started from in the days of RFC(IL)….offshore trusts and sub-trusts?


The Way it Works
Tic 6709 says:
July 20, 2014 at 10:57 am

A Tall Monitor.@ 9.40am.
Never mind the shenanigans going on in Ibrox, the bottom line surely is that, irrespective of the fact that there is a company (any company) operating a football club, the primary business of the company (and, in reality, the reason for the company’s existence) is football and that is why the company exists. Why then should the company legally, morally and legitimately be allowed to say that the football club is at arm’s length from the company and therefore not liable when the operation of that football club runs into financial difficulties, for whatever reason?
===============================
Perfect summary.
=====================================================
And that gentlemen, is a “perfect summary” of British company law in the 21st century…makes you feel proud does it not?


Recent Comments by essexbeancounter

It Is Better To Offer No Excuse Than A Bad One
Bogs Dollox
StevieBCDecember 22, 2017 at 18:29Guess that the CoS result could /should trigger a couple of events in the short-term;– King resigns from RIFC & – the auditors Campbell Dallas ‘do walking away’ ?You would think…?  +++++++++++++++++++++++++++++++++++++Their reputation is on the line. I would think ICAS practice regulation are keeping a close watch on this one._______________________________________________________
ICAS Practice Regulation only get upset when recalcitrant, (no, not “concomitant”) members, like me, fail to return meaningless checklists or forms in time.
Please believe me…I have “got form” in this area…. 01
Only when a serious complaint from “members of the public” is received, would any notice be taken…and minimum action result…
Please remember, that ICAS members, at least 20 in number, have been involved in this whole RFC/MIH/TRFC/TRIFC omnishambles over the last 20 years or so….and….yup…a big fat zilch from the “public”…
I rest my case….


The Lost Voice of the Armageddon Virus
“….(the phrase I had used was taken from a description of Falstaff in ‘Henry IV’ ( apologies, Essex, for a the reference to Shakespoke. Nice to have you back, btw!)…”
Good morning JC(e)…I was wondering when you would resurrect my old “bete-noire” Shakingspeare…19
Delighted to see that you are all the others are still banging away at the shame that masquerades as governance in Scottish football…


THAT Debate, and the Beauty of Hindsight
Stevie BC
….”My initial thought was that the ‘interims’ were back of a fag packet stuff: start with a minimal ‘profit figure’…then work backwards and plug in the difference into ‘Revenue’….” Shhhhh….now everyone knows how we beancounters work…”There was speculation that it was cobbled together by King, with the assistance of a ‘young staff member’….”…possibly another newly/recently qualified CA…searching for his career path to glory (not!)…090909


THAT Debate, and the Beauty of Hindsight
Saddened to see yet another fellow CA, instrumental in the whole MIH/RFC tax planning, aka tax avoidance/evasion/EBT scenario, squirming in court under cross examination. Just how many CAs have been involved in helping David Murray carry out his destruction of Scottish Football and his own publicly quoted business, but still leaving him a millionaire, relatively unscathed by his own misdeeds, for which he was ennobled? 1111


THAT Debate, and the Beauty of Hindsight
Good morning all…haven’t posted a comment for a few months…has anything happened.?..especially in the RIFC omnishambles 151515…?


About the author