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9am Lowdown: Tesco suppliers dragged into probe

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22nd Dec 2014
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Christmas week kicks off with news that suppliers to Tesco have been dragged into an accounting irregularities investigation at the supermarket giant.

Tesco suppliers dragged into investigation

The Serious Fraud Office is to meet major consumer goods groups as part of an investigation into Tesco.

The Sunday Telegraph reported that leading suppliers to Tesco, including Diageo and Unilever, expect to be interviewed by the SFO as part of its investigations at the supermarket giant.

Tesco has issued four profit warnings this year and in September revealed that it overstated it profits by £250m after revenue recognition irregularities were spotted in its half year results.

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Tribunal upholds legal ruling against SDLT avoidance

A tax tribunal has upheld a legal ruling against a SDLT avoidance scheme, protecting up to - HMRC reports - £123m in tax.

Scheme user Project Blue had appealed against an earlier first tier tribunal decision relating to its purchase of the Chelsea Barracks in London. This appeal has now been rejected by the upper tribunal.

The SDLT sub-sale alternative finance scheme was used in an attempt to eliminate all of the SDLT due on the purchase of the barracks.

The UT has decided Project Blue must pay £38m in SDLT.

The decision also affects 24 similar commercial cases and similar avoidance schemes with 900 users.

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Most Brits choose cash bonus to work during festive period

A PwC survey reveals 57% of adults would prefer a £250 cash bonus at Christmas to extra holiday time with their families.

The Daily Mail reports the same proportion chose a £250 voucher from their favourite shop, only 4% would take the offer of a £10,000 bar tab for their closest 10 colleagues, 5% would prefer a tablet computer and 4% opted for a Christmas hamper worth £250.

Would you choose a small cash bonus over a couple of extra days off with loved ones?

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If you're interested in doing some Christmas reading, check out Wolters Kluwer's audit and accounting set 2014-15.

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Boris Johnson calls for living wage tax breaks

Mayor of London Boris Johnson believes that rewarding work is a “Conservative mission”.

According to The Times Johnson wants the Tory party to put raising wages front and centre of their economic policy.

The mayor is stepping up pressure on the PM to support the campaign for the living wage, which is higher than the national minimum wage of £6.50 an hour.

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Film scheme investors mount legal challenge

Film scheme investors accused of tax avoidance by the Revenue are mounting a legal challenge to demands for upfront payment.

As reported in Financial Times, an application for a judicial review of the use of accelerated payment notices by the tax authority has been made on behalf of people who invested in three partnerships promoted by Ingenious Media, including Ingenious Film Partners 1 and 2, and Ingenious Games.

They claim the notices are unreasonable and illegal.

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By Justin Bryant
22nd Dec 2014 16:17

Project Blue
HMRC's press release in the link below is a joke. There was no finding of any tax avoidance motive whatsoever by the Upper Tribunal.
http://www.mynewsdesk.com/uk/hm-revenue-customs-hmrc/pressreleases/tribu...
Also, the reasoning in the decision is not exactly clear/consistent and there appear to be some errors in the decision and I think the taxpayer could well win on appeal in CoA.

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