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9am Lowdown

9am Lowdown: Osborne warns of Brexit tax hike

15th Jun 2016
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In this morning’s Lowdown, the Chancellor will spell out the financial consequences of Britain leaving the EU, and Barcelona FC settles Neymar tax fine.

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Osborne warns of Brexit tax hike

George Osborne will today warn that a vote to leave the UK will result in an emergency budget, where he will have to hike taxes and slash spending.

Osborne and the former chancellor Alastair Darling will publish an illustrative budget, outlining £15bn of tax rises and £15bn spending cuts. According to the Guardian, these measures include a 2p rise in the basic rate of income tax, a 3p rise in the higher rate, and a 5% inheritance tax rate to 45p.

Vote Leave campaigner Iain Duncan Smith, Liam Fox and Owen Paterson dismissed Osborne’s warning, saying "If he were to proceed with these proposals, the chancellor's position would become untenable."

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Barcelona settles Neymar tax fine

Barcelona FC has settled the £4.3m fine to the Spanish tax authorities over the transfer of Brazilian forward Neymar.

Barcelona’s president Josep Maria Bartomeu blamed the alleged tax fraud as “a mistake in the 2011 and 2013 tax planning in the signing of Neymar”, according to the BBC. The club paid the back taxes of €13.5m in 2014, but has denied the charges.

Neymar is still being pursued by the Brazilian tax authorities for tax fraud, where he and his father are accused of setting up companies as fronts in order to pay a lower rate of tax.

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Accountant’s death caused by asbestos

A retired accountant’s death was linked to asbestos exposure in the 1960s while he worked in a glass manufacturing firm, an inquest heard.

According to the Cornish Guardian, although Douglas Swire worked in the office, coroner Stephen Covell believes Swire came into contact with asbestos from the main factory. Swire’s subsequent employment and his DIY hobby were both considered as potential causes for his respiratory problems.

However, Covell said: "I don't have to come to the conclusion as to which period of employment caused the disease, but I do have to be satisfied that exposure at work caused it, and not exposure outside of work

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Accountex video of the day

In this morning’s video of the day, AccountingWEB’s Global editor John Stokdyk catches up with practice consultant and practice excellence judge Martin Bisset to discuss the changing UK practice landscape.

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What’s new on AccountingWEB

What a difference a day makes. To ensure you don’t miss anything, here are the latest stories to hit AccountingWEB over the last 24 hours:

Replies (6)

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Head of woman
By Rebecca Cave
15th Jun 2016 10:30

"Tax Lock" not effective if EUref vote for Brexit. I did say it wouldn't last...

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Replying to David Cameron:
By accountantccole
15th Jun 2016 12:04

Surely the chancellor would be criticised if he said nothing on this? The Remain campaign are being accused of scaremongering, but if someone tells you to wear a helmet on a motorbike because you might crash and die, is that scaremongering or presenting information that will help you make a more informed decision?
I would hope that the government have enlisted help to determine likely impacts on the economy. On the basis that 9/10 economists are predicting a dip in the economy, it isn't rocket science to conclude this will impact tax revenues and therefore to have a balanced budget it is likely to need tax increases.
On the upside, we get another budget to unravel and tax plan around.

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By JimFerd
15th Jun 2016 13:56

And if the threat of tax rises doesn't work, he'll be taking his ball and/or economy home and we'll no longer be able to play with it, sadly.

His last resort will be to kick our heads in.

Thanks (2)
By Ivytaxconsultants
17th Jun 2016 12:05

Never ignore how Murdoch press influence even educated mind. Present MP and chancellor are nothing but extension of Thacher-ism. They are selling us and our childrens' future to the open market with sweet talk of course.
I am a book worm, if Britten remains I have to pay VAT on my books like other EU countries pay. Besides, I am worried about more integration. When Turkey being a NETO member joins EU then we had it. Its already a strain on our essential services.

Thanks (1)
Replying to Ivytaxconsultants:
By Patrick McKeown
18th Jun 2016 18:48

The post "By Ivytaxconsultants 17th Jun 2016 12:05" is wrong on just so many fronts that it is actually very funny.
The bad spelling, would suggest foreigner or poor schooling,either way I think you need to extend your reading selection.

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By Ivytaxconsultants
17th Jun 2016 12:07

Moreover if we are in the thrusting TTIP on us shall be easier.

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