The bank’s UK subsidiary, Bank of Ireland Britain Holdings, created the
losses through the use of ‘repos’, complex financing schemes that use
The scheme allowed Bank of Ireland to claim relief on losses of £3.6m.
Advisers said the scheme had now been closed down after rules were brought in
to prevent the dodges.
The subsidiary took advantage of mechanical legislation to claim tax relief
on the losses, and even though it was obvious that the scheme was designed
solely to avoid tax, High Court judge Justice Henderson ruled that because the
legislation was not specific enough, the scheme should be allowed to stand.
partner John Whiting said: ‘This arrangement saw a glitch in the legislation
allowing the Bank of Ireland to claim the deduction. It was a classic avoidance
The case demonstrates the problem caused by over-complex tax legislation,
‘The lessons from the case are that complex anti-avoidance legislation
creates gaps of its own,’ he said.
Making Tax Digital will impose significant additional tax compliance costs on small businesses for little or no medium term benefit, tax and small business experts told MPs
MHA MacIntyre Hudson has partnered with cloud accounting software provider Xero ahead of the government’s requirement for digital records
The drive towards a fully digital tax regime is an admirable one, but mandation is simply wrong, according to one of the UK's most senior tax technology practitioners - Paul Aplin
Does Darwin's theory apply to taxation? Colin ponders...