News Article - 20 May 2008
Category:

Businesses in the finance, banking and insurance sectors are at a much higher risk of being taken to court by HM Revenue & Customs (HMRC) than other industries, new research has found.

The 2008 Tax Disputes Survey, published by law firm Lovells, reveals that organisations within the finance, banking and insurance industries account for 34 per cent of cases in which leading counsel were constructed.

A total of 22 per cent of these incidents were related to VAT issues, which included claims for zero-rating of supplies, attribution of input tax and claims for exempt supply status, among others.

Greg Sinfield, a partner in the tax disputes team at Lovells, commented: "This strongly suggests that such businesses [in finance, banking and insurance] are at a significantly higher risk of litigation proceeding to a hearing than many other industry sectors," he added.

Firms in these sectors may find that business accounting software helps them manage their finances.

Last week, the Forum of Private Business raised concerns that the 10p income tax rate for low earners could negatively affect smaller firms.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »