The after-effects of the Rangers decision are being felt beyond the tax tribunals. In two recent decisions (Re Vining Sparks and Toone), the High Court has considered the role and responsibilities of directors approving the entry into similar EBT schemes. The decisions reached differ, but what is clear is that directors must consider the entry into and impact of enquiries made into tax avoidance arrangements carefully, question and fully understand related risks and would be well advised to obtain independent advice beyond that of the promoter of the scheme itself. Second opinions should be capable of reliance: ‘phone a friend is’ not enough.
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The after-effects of the Rangers decision are being felt beyond the tax tribunals. In two recent decisions (Re Vining Sparks and Toone), the High Court has considered the role and responsibilities of directors approving the entry into similar EBT schemes. The decisions reached differ, but what is clear is that directors must consider the entry into and impact of enquiries made into tax avoidance arrangements carefully, question and fully understand related risks and would be well advised to obtain independent advice beyond that of the promoter of the scheme itself. Second opinions should be capable of reliance: ‘phone a friend is’ not enough.
If you are not a subscriber, subscribe now to read this content.
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