ICAEW exams

PREM SIKKA

It’s one rule for the rich countries and another for the poor

France, Denmark, Poland, Belgium, Wales and Scotland say that they will deny government-backed coronavirus bailouts to businesses linked to offshore tax havens. Sound good, but there is more to it. What do they mean by a ‘tax haven’? Tax havens are associated with secrecy, low/no tax rates, poor enforcement and cooperation with other countries. Who gets blacklisted depends on politics.

The Financial Secrecy Index developed by the Tax Justice Network lists countries facilitating secrecy and increased possibilities of tax avoidance and illicit financial flows. Its top two offenders are Cayman Islands and the US. Other offenders are Switzerland, Hong Kong, Japan, Singapore, Luxembourg, Netherlands, British Virgin Islands, UAE, Guernsey and yes – the UK. No one is proposing sanctions against them because they wield considerable diplomatic, military and economic power.

The second list produced by the EU names 12 jurisdictions including the Cayman Islands, Fiji, Guam, Oman, Panama, Samoa and the Seychelles. These countries are small and lack clout. The EU doesn’t mention any European tax havens even though Luxembourg, Monaco, Ireland and Switzerland have facilitated tax avoidance. The UK got a slap on the wrists from the EU for giving illegal state-aid to firms through its taxation system, but is not on the blacklist.

Some countries are showing moral indignation against small jurisdictions and doing nothing against the biggest players in tax avoidance.

Prem Sikka is Professor of Accounting at the University of Sheffield

ACA advanced exam bookings open

ICAEW students are now able to book for their advanced level exams. The online system is now open – from Monday 15 June until Friday 17 July.

The exams, which normally take place in July, are planned to run on 24, 25 and 26 August. The results will be released on Friday 2 October.

The Case Study advance information was available from 9 June, via the resources website.

The ICAEW reminds students that it has temporarily suspended the ACA assessment regulation requiring all other ACA exams to have been passed or attempted before the case study exam may be attempted.

The ICAEW also explained 2020 exams and learning materials were prepared before the coronavirus pandemic began, and when you sit your exam in 2020 they will not

The current crisis has made young UK audiences more discerning and questioning of what content they see and read through all media channels, a new EY survey reveals.

Nearly one-fifth (17%) of 18-24 year olds say they trust online news sources less today than before the crisis. This is, says EY, not an insignificant number – it is

have been amended to reflect the economic, business or financial impact of the pandemic. However, the exams have been reviewed to ensure that they are still a viable, objective test of the competencies and skills required for your qualification. It said: “Some exam question scenarios may relate to an industry, sector or business on which the Coronavirus has had an impact. Where analysis of that scenario is required, it may be relevant to mention briefly in your answer the implications of coronavirus. “However, you should not dedicate substantial time or focus on these implications. You should focus on answering the question appropriately, using the technical knowledge and skills as set out in the ICAEW learning materials.”

Trust in the media falling

in fact the highest among any demographic and almost twice those aged over 55 (9%). The same trust issue manifests itself explicitly on social media. Of all UK households, 17% say they now trust social media less than they did before the coronavirus outbreak.

The Financial Reporting Council’s chair, Simon Dingemans, has stepped down barely nine months into the job.

Former GlaxoSmithKline finance boss Dingemans was appointed last July to oversee its transformation into the Audit, Reporting and Governance Authority (ARGA).

FRC chairman to step down

As chair of the FRC is a part-time position it was agreed as part of his appointment process that he could take on additional roles, provided they did not conflict with his responsibilities at the watchdog. This has not proved possible and so Dingemans (pictured) has informed the Board and the Secretary of State that he intends to step down.

Yet this number is highest in the younger age group at 24%. EY said the Covid-19 crisis has created a tumult of fact and fiction with reported misinformation, uniformed opinion or fake news.

‘Scrap marriage allowance’

AAT has reiterated its call for the removal of the Marriage Allowance, in a new response to the Office of Tax Simplification’s call for evidence on ‘claims and election reviews’. It first made this proposal in 2018 and continues to believe that scrapping this relief would be in the best interests of the taxpayer and HMRC. AAT told the OTS that the relief cost taxpayers more than £500m a year, is taken up by less than half of those who are eligible, and benefits the married couple by a relatively small sum of £250. It said: “Removing the allowance is not going to influence an individual’s decision to get married – and it is in no way an indication as to whether or not a political party supports the concept of marriage.”

Taxwatch

PapSaudi Arabia triples VAT

Saudi Arabia has increased VAT threefold as it steps up support of its economy. The cost of living allowance will also be suspended, as the Kingdom’s oil income has plummeted. VAT will increase from 5% to 15% as of 1 July, and the allowance was suspended from 1 June. The allowance of 1,000 riyal a month to state employees was introduced in 2018.

He is joining Carlyle Group as managing director. The Department for Business, Energy and Industrial Strategy will now bring forward the appointment of a new FRC chair.

Gambling firms win £1bn

Betting firms have won a multi-billion-pound tax rebate over slot machines. Betfred and Rank Group will now receive more than £1 billion plus interest, following a court ruling that HMRC had wrongly charged them VAT on their fixed-odds betting terminals and other slot machines. The Upper Tax Tribunal case could now result in HMRC paying refunds to other companies dating back 20 years. Justice Mann and Judge Thomas Scott said that VAT should not have been charged on takings from the FOBT machines because they are similar to VAT-exempt gambling devices such as casino roulette wheels. HMRC said it was undecided on whether it will seek permission to take the case to the Court of Appeal.