27 June 2012
Press ReleasesA Tax Tribunal decision delivered this week may leave Greene King, the brewer and publican, facing a double tax bill following a failed tax planning scheme that sought to gain tax relief for a payment of over £20 million by one group company without the recipient company suffering tax.
The decision, which follows closely the humiliating exposure of the aggressive tax avoidance measures taken by Jimmy Carr and other celebrities, is, according to accountants and business advisers James Cowper Kreston, another example of HMRC seeking to stamp out what it considers unacceptable measures to avoid paying tax.
Chris Lee, Partner, James Cowper Kreston, said: “The Tax Tribunal has said that Greene King’s actions might eventually lead to double taxation. Greene King had no objection to the receipt being untaxed, and the Tribunal’s view is that they cannot legitimately complain if a correct interpretation of the law results instead in their paying tax twice.”
The scheme used by Greene King that was brought into question was designed by the company’s auditors, Ernst & Young.
Chris adds: “HMRC is stamping its authority and whether a private investor or large company looking to minimise the tax paid through complex tax planning schemes it is a case of caveat emptor – buyer beware.
“I would also not be surprised if we were to see companies and private investors taking legal action against promoters of tax schemes that do not work out in the way they were intended.”
Chris Lee, Partner, James Cowper Kreston LLP, Tel +44 (0)118 959 0261 or email
