Court of Appeal Rules on Liability of Non-Tax Specialist Accounting Firms

The Court of Appeal has ruled that non-tax specialist accounting firms do not have an open-ended liability for tax advice. In Mehjoo vs. Harben Barker [2014] EWCA Civ 358 an Iranian businessman living in the UK since 1971 and a UK citizen had successfully sued Harben Barker (HB) for not recommending a capital gains tax scheme using the fact he was, or might have been, Iranian domiciled. But the Court of Appeal judged HB had never held itself out as specialist tax planners but were generalist accountants providing just routine tax advice as shown by their retainer. As Patten J put it HB were under no duty to advise on tax advantages which, to their reasonable knowledge, did not exist.

Eamon McNicholas
Tax Barrister, Accountant

http://www.EamonMcNicholas.com

Advertisements

About Eamon McNicholas

Tax Barrister, Accountant www.EamonMcNicholas.com
This entry was posted in Tax and Accounting News and tagged , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s