MG Rover faces questions over its tax affairs, it has emerged.
The company’s accounts reveal two significant and unusual tax issues that
have arisen. Administrators PricewaterhouseCoopers are apparently challenging
the company’s group relief arrangements, the rules whereby subsidiaries’ losses
can be offset against group profits.
The Phoenix Four also face a £1.7m IHT bill in relation to their pension fund
arrangements, structured through an Employee Benefit Trust (EBT), the vehicles
currently under attack by HM Revenue & Customs.
IHT bills are applied in various instances to close companies as a way of
preventing wealth being passed down generations through family businesses.
The company’s financial statements disclose the possible bill from HMRC, as
well as the fact that Deloitte, the group’s auditors, have qualified the
The accounts also contain a writedown for the use of tax losses arising from
the EBT payments, following last summer’s Dextra decision, which established
that such payments were not deductible against profits.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states