Tax Experts' Liability

[nvager 498]

If the professional advice given to Rangers by tax experts results in a huge tax bill, then surely these experts would be liable? Could Rangers not then sue them for incompetent professional advice?

Just a thought.

[miracle 7,789]

I would imagine the accountants' public indemnity insurance would come into play?

[Blueshoff 11,755]

I made that point in an earlier thread. Rangers would be rsponsible to repay unpaid tax/fines but would be able to recover the costs (and maybe something for damaged reputation)from the expert's prpofessional indemnity insurers.

One other point that occurs to me is that as what Rangers did re image rights etc. is widespread amongst football clubs - are there any other clubs in Scotland who maybe have done the same? Maybe even another one in Glasgow......................

[GeneralCartmanLee 313]

The length of that court case would be years and could cost us a fortune. It is an avenue we could go down though.

Lets wait and see what the details are though, for all the posturing of the evening times we know nothing yet.

[Ace 3,556]

The problem is that experts opinion is just that .. opinion.

The only arbiter of Tax decisions is HMRC, seems odd that the person who benefits form tax decisions is the same person who decides how the rules apply.

[Bluepeter9 5,167]

I posted this elsewhere BUT basically some tax law is quite liberal and open to interprtation and 'some' tax advisors play a line and it is NOT unusual if you try something different to be investigated by the tax man - Its often just like a negotiation on interpretation rather than any fraud or wrong doing - this whole tax thing is a non-story!

[Mikhailichenko 90]

The problem is that experts opinion is just that .. opinion.

The only arbiter of Tax decisions is HMRC, seems odd that the person who benefits form tax decisions is the same person who decides how the rules apply.

Not strictly true, Ace. I know of cases where companies have taken HMRC to court to get money back that they claimed shouldnt have been paid due to a loophole. The company won and opened the door for other companies to claim back overpayments. My company was succesful in doing this. Shortly after HMRC asked for the law to be changed and it duly was (very, very quickly by the way).

To sum up, the High Court made a decision on the laws as they stood. However, the Treasury get the rules changed when it goes against them as they hate paying out money.

I dont want to give to much away on a open forum but you can pm me if you want some more detail.