London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Accountants have a duty to advise on tax loopholes

A recent court ruling appears to suggest that accountants have a duty to advise clients on the options available to avoid paying tax.

The judge hearing a case of professional negligence said the firm should have told their client about an offshore tax avoidance scheme.

The judge found that a ‘reasonably competent’ accountant would have recognised that, as a non-domiciliary, their client was eligible for tax schemes not available to ordinary UK citizens.

In his ruling, the judge said ‘the defendants had a contractual duty to advise the claimant that his non-domiciled status carried with it potentially significant tax advantages.  He likened this duty to refer a client to a tax specialist to that of a GP’s duty to refer a patient, in that if a professional knows there might be possible types of treatment known only to specialists, then that triggers a duty to advise.

The firm is appealing.
 

 

 

Date: 10th July, 2013
Author: Cathy Corns

SHARE THIS

Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

Mercer & Hole’s @GudgionJa progress in @CelebJustDance - Not much longer to Waite now….. bit.ly/2gqZOZq @MKDonsSET

Mercer & Hole’s Michael Lapham impresses at the @MoneyMgmtMag Financial Planner Awards bit.ly/2yw3Ieetwitter.com/i/web/status/9…

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn