Good morning. Here’s this morning’s 9am Lowdown
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HMRC releases MTD video
HMRC has released a three minute video to YouTube explaining how Making Tax Digital will ‘digitally transform’ businesses.
The video dispels the idea that the digital drive means four tax returns a year. Instead, the video focuses on how the digital change will “bring an end to the burden of the annually tax return for businesses”.
The video then shows in practice, depicting the struggles of John the plumber as he endures completing his annual tax returns. Instead, the video explains how the system is ‘quicker, easier and better all round’. HMRC also claims that people who can’t get online will receive help and support from HMRC.
Watch the video below:
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Stagecoach avoidance scheme breaks down
The first tier tribunal has ruled against a tax avoidance scheme used by bus and train firm Stagecoach to cut their tax bill by £11m.
The tribunal sided with HMRC’s legal challenges. There are 11 other similar cases which will be affected by this decision and the total tax at stake is £179m. The scheme involved moving money between companies in the Stagecoach group in an attempt to artificially reduce their corporation tax bill.
HMRC’s director general of business tax, Jim Harra, said: “This was clear tax avoidance. It was an attempt to manufacture losses to deny the public purse the tax due. We will challenge any attempt to abuse the rules to avoid paying what is owed.”
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PwC announces new global chairman
PwC has named Robert E Moritz as its new its new global chairman for a four year term beginning in July.
Moritz succeeds Dennis Nally, the current PwC global chairman, who will retire this June after a 42-year career with the firm. Moritz has been with the Big Four firm since 1985 and has led PwC US since 2009.
Commenting about Moritz’s appointment, John G Maxwell, chairman of PwC’s global board said: “During his tenure in the US, Bob's outspoken support of work-life flexibility for the firm's people, the importance of diversity on his own team, and the significant investments he has overseen in new and cutting edge technologies make him the ideal forward-looking leader to navigate the global economy and bring our best ideas and solutions to clients.”
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About Richard Hattersley
Richard is AccountingWEB's practice correspondent. If you have any comments or suggestions for us get in touch.