Week in review: 13 - 17 Jan
The Financial Services Authority dominated the news this week as it sought to increase its investigative powers, while a Quaker accountant took on the Revenue and Ernst & Young took on Equitable Life.
saw Ernst & Young launch a High Court bid to strike out a professional negligence damages claim against it worth a potential £2.6bn from the new board of Equitable Life.
On the same day, the Treasury came under fire over the time taken using the reformed resource accounts of government departments and public bodies to produce the first ever set of central government accounts.
On Tuesday the founder of contractor lobby group the Professional Contractors Group admitted defeat in the fight against IR35, but now wants to help freelance IT workers get around the tax rules.
On a lighter note finance directors might be conservative, number-crunchers, holding the budget purse strings tightly to their chests, but a survey revealed they have fine taste in luxury cars.
Wednesday, an Essex-based chartered accountant stood firm against the Inland Revenue with ‘no intention’ of paying a tax bill unless he receives a guarantee that it will not be spent on war.
Speculation grew that the Department of Trade and Industry was to announce arrangements that will allow the Financial Reporting Review Panel to become proactive and make spot checks on company accounts.
Thursday saw reports suggesting the FSA wants the power to investigate company accounts for breaches of accounting standards and law in a move that would see the regulator become much more like US watchdog the Securities and Exchange Commission.
According to this week’s Accountancy Age/ Reed Accountancy Personnel Big Question, almost three in four FDs disagreed with a proposed graduate tax compared to less than one in five who thought it was a good idea.
Friday, saw an influential all-party group of MPs demand that the chancellor of the exchequer reveal the date of the Budget at least two months in advance.
And it was reported that the Treasury is to back the Financial Services Authority’s push for extra powers to clamp down on accounting abuses.