Following reports this week that an E&Y tax scheme, used by more than 30 companies, is to be probed by the Inland Revenue, the firm has issued a statement defending the work done by its tax practice.
The statement reads: ‘Ernst & Young’s UK tax practice exists to serve the needs of its clients and we have tax compliance, assurance and advisory specialists who give our clients the highest possible standards of tax advice. All our work is subject to the most rigorous quality management procedures.
‘At the heart of our tax planning is the principle of full disclosure. All of the tax planning we offer is legally compliant and properly disclosed to the revenue authorities. Businesses are taxed under the law and are entitled to plan within the law. Whether a specific planning idea works is a legal question, which should be dealt with in discussion with the tax authorities and if necessary through the courts.’
The firm said it did not comment on client affairs and said client confidentiality was crucial to professional integrity.
E&Y also said it is engaged in ‘open and constructive dialogue with the Revenue authorities around the new tax disclosure regime’.
‘We have had several meetings, including one today. We will continue to help produce legislation that will work and will minimise the burdens on our clients.’