Has anyone looked at the Dragoni products?

Dragoni seem to be offering an SPV which they claim massively reduces taxes and costs.

Didn't find your answer?

I have seen some dubious tax schemes in the past and am therefore inclined to avoid them.

A client has asked about the current offering from DragoniĀ  - they say they can give you a 10% tax rate with some special spv and barristers opinion etc.

Alarm bells for me, but I havent seen the details. Has anyone else had a look at it? I assume I am right to run a mile?

Would appreciate your thoughts.

Replies (10)

Please login or register to join the discussion.

avatar
By nrw2
19th Jul 2023 13:52

There's usually only one winner from these products (clue: it isn't the client).

There's usually only one loser from these products (clue: it isn't HMRC).

Thanks (4)
Danny Kent
By Viciuno
19th Jul 2023 14:07

Article on AW last year (https://www.accountingweb.co.uk/tax/business-tax/tax-qc-beats-claim-for-...) RE barrister's opinions not being worth the paper they are written on as the advice is to the firm selling the highly aggressive, probably artificial, tax scheme rather than the person who is actually relying on the advice.

I'm not a lawyer though (obviously) so there is probably a whole load of nuanced nonsense around this, and probably 10 other cases coming to different conclusions.

End of the day though if your super clever tax avoidance *cough cough* scheme relies on poor drafting of legislation or some horribly convoluted (probably expensive) company structure to get around paying taxes and you are relying on the word of a barrister to justify/explain it I'd avoid like the plague.

Thanks (2)
By ireallyshouldknowthisbut
19th Jul 2023 14:29

As a rule of thumb, anything sold to you with a barrister opinion = bent as a nine bob note.

if it works, you don't need a tax barrister to be paid to say it does, the legislation says it does.

Thanks (5)
By SteveHa
19th Jul 2023 15:05

They are promoting use of off shore SPVs to contract back to UK companies. Almost certainly fails (or will when it lands in court).

Thanks (2)
avatar
By petestar1969
20th Jul 2023 13:39

Remember a barrister's opinion is just that, an opinion.

Just like when we sign off audit reports with that phrase "in our opinion, the accounts show a true and fair view....." blah blah. Its not indicative that everything is fine.

Of course, pay a barrister enough dosh and their opinion, eventually, will always be that whatever it is "works". They won't say so right away though, they'll need a couple of redrafts and fees for their opinion on each draft..

Thanks (0)
Replying to petestar1969:
avatar
By Justin Bryant
21st Jul 2023 09:14

A bit like most Big 4 audit opinions n'est-ce pas?

Thanks (1)
avatar
By Tax Dragon
20th Jul 2023 21:44

Not sure what you were expecting from the replies. A detailed run-through of the planning with a full critique of each step (and overview)?

May I ask... what did you actually want by way of reply? How would you have reacted had someone actually posted such a detailed and full response? Would you have coped?

Thanks (0)
By Ruddles
20th Jul 2023 21:56

There is a universal truth about any opinion - someone equally qualified will be of the opposite.

Thanks (0)
Replying to Ruddles:
avatar
By Tax Dragon
20th Jul 2023 22:01

Good point. Did OP want two full analyses, reaching opposing conclusions?

Thanks (0)
Replying to Ruddles:
avatar
By Tax Dragon
20th Jul 2023 22:06

Good point. Did OP want two full analyses, reaching opposing conclusions?

Thanks (0)