A High Court judge has ruled that chartered accountant, Alan Purnell, must pay a former client more than £1m in relation to tax charges levied by HMRC after he was placed into an offshore tax scheme that failed.
In the case of Mehjoo v Harben Barker the former firm director advised his client Hossein Mehjoo to invest in June 2005 in a non-dom tax scheme that was then widely used by accountants and operated by tax consultants Montpelier.
The scheme cost £200,000 to enter, but by keeping funds in the scheme Mehjoo was able to avoid paying capital gains tax when he sold his interest in retail business Bank Fashion for £8.5m in April 2005.
The court heard that...
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