The chief executive of one of the UK’s largest accounting bodies has criticised accountants who promote aggressive tax avoidance.
Michael Izza, the chief executive of the ICAEW has arged that there is no place in the accountancy profession for extreme tax avoidance measures, such as the K2 scheme which was heavily reported on last month, following an investigation by a national newspaper.
Writing in his blog, Mr Izza has said that the public have little patience with the traditional defence that tax avoidance was legal, unlike tax evasion, adding that tax accountants need to shun tax dodges that were self-evidently artificial.
Mr Izza went on to say: “The principle is not to do anything that brings the profession into disrepute” claiming that accountants needed to apply a “smell test” to determine whether such work was ethically acceptable.
The comments by Michael Izza have received a mixed reaction from accountants, however the chief executive of ICAS, Anton Colella, has echoed the sentiments, saying: “It is difficult to argue that some of the complex, contrived vehicles for tax avoidance about which we have heard so much over the past few weeks are examples of acceptable, prudent tax planning.”
At Milsted Langdon, our accountancy and taxation specialists are on hand to offer individuals and businesses honest, professional and tailored advice, support and guidance to help minimise the tax burden now and in the future.
As an accountant, Sarah Jenkins, specialises in management accounting, business development and financial reporting.