I am lucky to have a wide range of interesting work. This week, I have been working on an offshore property structure, considering the impact of the OECD’s work on BEPS and working through some of the corporate interest restriction rules contained in TIOPA 2010 Part 10. I have been looking at a claim for unilateral foreign tax relief for Mozambique withholding tax for an international group, and I have also been considering the impact of the mixed membership partnership rules contained in ITTOIA 2005 Part 9 for another client.
What do you know now that you wish you’d known at the start of your career?
It is not enough to have an excellent knowledge of tax legislation. It is also important to have very good ‘soft’ skills when dealing with clients to better understand their business and the issues that are important to them. That way, you can gather the relevant facts before reading the legislation very carefully in order to understand how the law applies to those facts. Tax legislation is becoming more and more complicated, so it is crucial not to jump to conclusions. Make sure that you have read all the relevant legislation, related guidance and any commentary you can find on the subject. I have also learned that there will usually be someone in your organisation who has experience of a particular subject that could be helpful to you. It is a good idea to take advantage of opportunities to discuss technical issues with other people wherever possible.
Are there any new rules that are causing a particular problem?
New legislation introducing substance requirements for companies in a number of British overseas territories and Crown dependencies was approved in late 2018. The purpose of this legislation is to ensure that companies and certain other entities have sufficient substance either in the jurisdiction in which they are incorporated, or another jurisdiction where they are tax resident. In respect of companies resident in Jersey, the Isle of Man and Guernsey, for example, the legislation is effective for accounting periods commencing on or after 1 January 2019; however, the most recent guidance on the scope and application of the new rules was issued on 26 April 2019. This mismatch between the bringing into force of new legislation and the release of supporting guidance makes it difficult to advise clients on how to prepare for and comply with the new rules.
Is there a recent tax case that has caught your eye?
I found the recent case of Grint v HMRC [2019] UKUT 28 (TCC) fascinating reading. It reviews the rules on basis periods and change of accounting date, and illustrates the importance of getting the details right and also the reasons why accounts are prepared. This case is a useful reminder that accounts are not only drawn up in order to prepare a tax return, but also have a very important function as the basis for comparison of one year with another and to see how a business is developing. It is difficult to argue that accounts should be disregarded if they have been approved by a taxpayer and have in fact been used to monitor performance.
Finally, you might not know this about me but …
I am studying the Cornish language at evening classes in London and enjoy visiting Cornwall as many times a year as I can manage. Cornish has common roots with the Welsh and Breton languages, and my family are now used to me pointing out the similarities on the road signs we pass when driving in Wales! I’m currently working on a translation of a 16th century Cornish play about the life of Saint Meriasek and I’m finding it fascinating to realise that the things that are most important to us and the things that make us laugh really haven’t changed very much through the centuries.
I am lucky to have a wide range of interesting work. This week, I have been working on an offshore property structure, considering the impact of the OECD’s work on BEPS and working through some of the corporate interest restriction rules contained in TIOPA 2010 Part 10. I have been looking at a claim for unilateral foreign tax relief for Mozambique withholding tax for an international group, and I have also been considering the impact of the mixed membership partnership rules contained in ITTOIA 2005 Part 9 for another client.
What do you know now that you wish you’d known at the start of your career?
It is not enough to have an excellent knowledge of tax legislation. It is also important to have very good ‘soft’ skills when dealing with clients to better understand their business and the issues that are important to them. That way, you can gather the relevant facts before reading the legislation very carefully in order to understand how the law applies to those facts. Tax legislation is becoming more and more complicated, so it is crucial not to jump to conclusions. Make sure that you have read all the relevant legislation, related guidance and any commentary you can find on the subject. I have also learned that there will usually be someone in your organisation who has experience of a particular subject that could be helpful to you. It is a good idea to take advantage of opportunities to discuss technical issues with other people wherever possible.
Are there any new rules that are causing a particular problem?
New legislation introducing substance requirements for companies in a number of British overseas territories and Crown dependencies was approved in late 2018. The purpose of this legislation is to ensure that companies and certain other entities have sufficient substance either in the jurisdiction in which they are incorporated, or another jurisdiction where they are tax resident. In respect of companies resident in Jersey, the Isle of Man and Guernsey, for example, the legislation is effective for accounting periods commencing on or after 1 January 2019; however, the most recent guidance on the scope and application of the new rules was issued on 26 April 2019. This mismatch between the bringing into force of new legislation and the release of supporting guidance makes it difficult to advise clients on how to prepare for and comply with the new rules.
Is there a recent tax case that has caught your eye?
I found the recent case of Grint v HMRC [2019] UKUT 28 (TCC) fascinating reading. It reviews the rules on basis periods and change of accounting date, and illustrates the importance of getting the details right and also the reasons why accounts are prepared. This case is a useful reminder that accounts are not only drawn up in order to prepare a tax return, but also have a very important function as the basis for comparison of one year with another and to see how a business is developing. It is difficult to argue that accounts should be disregarded if they have been approved by a taxpayer and have in fact been used to monitor performance.
Finally, you might not know this about me but …
I am studying the Cornish language at evening classes in London and enjoy visiting Cornwall as many times a year as I can manage. Cornish has common roots with the Welsh and Breton languages, and my family are now used to me pointing out the similarities on the road signs we pass when driving in Wales! I’m currently working on a translation of a 16th century Cornish play about the life of Saint Meriasek and I’m finding it fascinating to realise that the things that are most important to us and the things that make us laugh really haven’t changed very much through the centuries.
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