Ex-EMI chief thought Baker Tilly scheme risk-free

Eric Nicoli, the former chief executive of music group EMI, told court
yesterday, he invested in a film financing scheme, endorsed by
Baker Tilly and
barrister Adrian Shipwright of Pump Court Tax Chambers, believing it was
‘virtually risk free’.

Giving evidence on behalf of a group of 75 investors who lost money when the
scheme failed and who are suing Baker Tilly and Shipwright for £23m, Nicoli said
he regarded a minimum 40% return on the film scheme as a ‘definite outcome’,
The Times reports.

Nicoli the first witness in a month-long trial in which the investor group,
also including Guy Hands, head of the private equity firm which has recently
acquired EMI, is suing Baker Tilly and Shipwright for giving negligent tax

Baker Tilly and Shipwright deny negligence. In cross-examination, their
lawyer asked Nicoli how he knew the scheme had received the experts’
endorsement, to which Nicoli replied he had had been told by his financial
adviser, conceding he had not read the relevant advice given by either Baker
Tilly or Shipwright.

Further reading:

Hands on witness stand in film tax case

Baker Tilly faces negligence claim

The Times story

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