The details of the firm’s advice to businesses was revealed this month as a
case disputing the efficacy of the scheme KPMG was selling came before the
Special Commissioners of HM Revenue & Customs.
KPMG sold the scheme to IT company Spectrum Computer Supplies and timber
merchants Kirkstall Timber in the mid-1990s.
It allowed directors to avoid NI and PAYE taxes by receiving company book
debts instead of cash when bonuses were paid.
Special commissioners John F Avery Jones and Adrian Shipwright said that both
appeals rested on whether the assignment and collection of book debts on behalf
of the directors qualified as trading arrangements or a standard payment to the
Timothy Brennan QC, who was instructed by McGrigors for Spectrum and
Kirkstall, argued that because the arrangements to collect the book debts were
already in place within the credit control structures of the companies, the
debts would still have been collected even if they had not been assigned to the
The special commissioners, however, concluded that the assignment of the
debts amounted to payments and did not qualify as trading arrangements.
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