Ernst & Young was served a writ for damages of at least #100,000 last week by a French company claiming the firm had provided ‘negligent’ tax advice.
Gallay Conteneurs et Systemes SA agreed to sell its Birmingham-based subsidiary – Gallay Containers and Systems – to GEI International in 1996. GEI agreed to pay #1m for Gallay’s shares and a further dividend of #500,000.
According to the writ, E&Y partner Mark Hodgkins advised the parent company to reduce GEI’s dividend payment by #100,000, as the money was recoverable as an advance corporation tax refund in France.
But the company was unable to recover the money and the writ demands it from E&Y. ‘They ought to have known that the ACT paid by the company in respect of the interim dividend would not be recoverable by the plaintiff in France,’ the writ says.
E&Y, which also faces a writ for #500,000 from the Royal College of Obstetricians and Gynaecologists over alleged breach of contract, said it would fight Gallay’s writ.
Crowe Clark Whitehill , the top 20 accountancy firm, has announced the promotion of Chris Mould to partner
The latest opinions from Accountancy Age on Making Tax Digital, and outline plans to evolve the UK's corporate governance regime
Five million taxpayers are ow using digital personal tax accounts (PTA) as part of the making tax digital strategy, HMRC said
UK-based non-doms have paid ten times more tax than the average taxpayer, raising concerns over the Brexit impact on non-dom contributions and therefore, the economy