Big Five - Tax writ served on KPMG
Chartered Institute of Taxation president Keith Daniels and KPMG, the firm where he is a tax partner, are being sued for more than #200,000 by two people who say that inadequate advice by the accountants pushed up their tax bill.
Beryl and Frederick Hartley of Sheffield are suing Daniels for #199,688.
The Hartleys say this is the additional tax liability to which KPMG exposed Ms Hartley when the firm valued her shareholding in Industrial Fastner Suppliers Limited in 1982.
In a writ issued in the High Court last month, the Hartleys said Ms Hartley’s holding in IFSL should have been valued on a majority basis, not on a minority basis, when she disposed of her shares in the company.
As well as the additional tax which they were forced to pay, the Hartleys are also seeking damages and interest from KPMG and want to see the firm return the professional fees they paid to KPMG.
A spokesman for KPMG, which was served with the writ just before Christmas, said: ‘We believe the case has no merits and we will be contesting the writ vigorously.’
Daniels was not available for comment.