Source: theguardian.com 17 October 2017
“It seems that Daphne Caruana Galizia’s enemies finally decided that her courageous journalism needed to be silenced.”
Source: accountancyage.com 16 October 2017
The Financial Reporting Council (FRC) has fined EY £1.8m over misconduct in relation to the audit of the financial statements of Tech Data Limited for financial year ending 31 January 2012.
Julian Gray, senior statutory auditor and audit engagement partner has also been fined £59,000 after he and the firm admitted that their conduct “fell significantly short” of the expected standards.
EY and Gray also admitted that they “failed to act in accordance with the ICAEW’s Fundamental Principle of Professional Competence and Due Care”, according to a statement from the FRC.
The audit misconduct related to a failure to obtain reasonable assurance that the financial statements were free from material misstatement, failure to obtain sufficient appropriate audit evidence and failure to exercise sufficient professional scepticism.
Source: HMRC Press Release 14 October 2017
HM Revenue and Customs (HMRC) has won a landmark case against a tax avoidance scheme promoter that could lead to the recovery of £110 million.
The victory over scheme promoter, Root2, came after they failed to report a mass-marketed tax avoidance scheme, known as Alchemy, to the tax authority.
The First-tier Tribunal agreed with HMRC that the promoter did not abide by the DOTAS rules. There is no right of appeal against the Tribunal decision.
HMRC will seek to impose a substantial penalty on the promoter for failure to disclose the scheme.
HMRC does not approve tax avoidance schemes. Under DOTAS, promoters must notify HMRC of schemes that contain various hallmarks of tax avoidance. If a scheme has been notified under DOTAS, it does not in any way signify that it has been approved by HMRC.
DOTAS guidance can be found here.
Source: bbc.co.uk 4 October 2017
The European Union has launched a fresh crackdown over taxes paid by tech giants Amazon and Apple.
Amazon has been ordered to repay €250m (£221m; $293m) in back taxes after the European Commission said it had been given an unfair tax deal in Luxembourg.
The Commission also plans to take Ireland to court over its failure to collect €13bn of back taxes from Apple.