News in Brief - 20 November
Firm fights to clear name
Former partners of defunct accountants McGurran Solkhon are in the High Court this week fighting a negligence and misrepresentation claim brought by liquidated client Leisure Company UK?s former MD Paul Harvey. In a separate matter, former partner Brendan McGurran faces trial for alleged #500,000 VAT evasion on 22 January.
E&Y demands CGT ?rethink?
Ernst & Young has demanded a fundamental rethink of capital gains tax. Douglas Fairbairn, E&Y?s head of tax, feared the chancellor would concentrate his review on perceived loopholes.
Scots councils spend #6.5bn
The Rating Review of Scottish Local Authorities, published by CIPFA, revealed this week that expenditure by Scottish local authorities will be around #6.5bn in 1997/1998. It is expected to range from #41.5m in the Orkney isles to nearly #987m by Glasgow City Council.
Club accounts qualified
Auditor Gerald Kreditor & Co has qualified the accounts of GR (Holdings), which runs the Grayshott Hall health club, following a check on the group?s assets. The firm said that the auditors of a US subsidiary had failed to discover whether it had set a fair value on a $3.5m interest in partnerships.
It may not pay to leave UK
Tax experts warned the green budget could hit non-residential status. Kidsons Impey said that anyone planning to leave the UK after 25 November for tax purposes could find, on their return, they have not lost their UK tax resident status and face a bill for asset disposals carried out while abroad.
Lawyers seek tax reform
Resources & Whitepapers
Accounting Software The power of customisation in accounting systems
The Law Society?s revenue law reform committee wants an extension of the period when exempt transfers can be made between a husband and wife from one year to three years after separation. It is also seeking a fairer approach to taxation of pooled company cars and simpler rules on company distributions.
Factored debt clarified
Customs & Excise has clarified its treatment of factored debts for companies using cash accounting schemes. From 22 September this year companies with taxable turnover below #350,000 cannot use schemes to account for factored debts. Customs has also revised its position on the recovery of input tax on staff entertainment in time for the Christmas party season. Entertainment provided to maintain and improve staff relations can be classed for ?wholly business purposes?, while entertainment of employee?s guests is non-deductible.
Revenue advises on Controlled Foreign Companies
The Inland Revenue has published draft legislation requiring companies to include amounts chargeable under Controlled Foreign Companies rules to tax returns. This reverses the present position, where the initial onus is on the Revenue to discover if a company has a CFC.
SNFU urges farmers to act
The Scottish National Farmers Union warned members to act now before tax changes in Tuesday?s green budget. The warning came after reports of a rush to buy farmland for fear that key tax reliefs, including reinvestment and roll-over reliefs, could be reduced or abolished.
Staff need advice on profit-related pay
Companies need to plan and communicate their exit from profit-related pay schemes in order to avoid demotivating staff next year, warns an Ernst & Young report. E&Y found that more than one-third of companies have no exit plans, while more than two-thirds have not explained the implications to employees.
