Tax has been a high profile topic in the press recently and an interesting underlying theme has been the reputation of tax professionals in the private sector.

The Chief Political Commentator of the Telegraph, Peter Osborne, recently wrote one of the most damning verdicts. He stated ‘there are few more worthless specimens of humanity than tax accountants and tax lawyers’.

Anthony Thomas, President of the CIOT, leapt to defence, arguing that the majority of media comment was ‘ill-informed, ill-conceived, ill-thought out’.

The widespread public disapproval of tax avoidance by multinational organisations has resulted in a conscious effort by those in the profession to improve public image.

Mark Robertson, representing the investment research service Eiris, highlighted how ‘significant reputational damage in the form of negative publicity arising from aggressive tax evasion’ can create financial risks for organizations. Joe Stead from Christian Aid noted that ‘becoming known as a tax dodger can damage a company’s reputation and lead to costly penalties’.

So, what can tax professionals learn from recent articles in the press? It would seem that the greater public has focused more on tax avoidance schemes in general than individuals’ actions and there are a variety of motives behind the most negative comments. Tax professionals will have to continue to be conscious of heightened scrutiny and the impact of their reputation on the business as a whole.

Guest blogger

Beth Horne, Candidate Manager, Morgan McKinley Taxation

Peter Osborne, reputation, Tax Avoidance, Tax Evasion, Tax Professionals, Taxation

With the wealth of established talent that works and resides in the City, expect London to remain a global financial centre for some time yet.

There has been much hype this year about a “mass exodus” of London bankers and traders to more favourable tax regimes in Asia and the Middle East.

Even London Mayor Boris Johnson weighed in on the debate, warning that new bonus regulations and higher taxes could see up to 9,000 executives turn their backs on the City.

But ten months on, fears of a talent drain appear to be overblown as we are still seeing a strong commitment to London from the financial services sector.

Major banks such as UBS and Nomura have recently commissioned new offices in the City, and Wall Street firm JPMorgan has signed a deal to shift its European headquarters to Canary Wharf.

Employee confidence is also up heading into bonus season. Morgan McKinley’s latest bonus survey found that nearly half of London bankers and finance professionals expect a higher bonus pay-out than last year.

The number of professionals entering the City jobs market last month is also up 60% on the same time last year.

With the wealth of established talent that works and resides in the City, expect London to remain a global financial centre for some time yet.

Bonus pay outs, exodus, Finance Jobs in London, Taxation

The Exchequer’s coffers are running on vapour and tax avoidance presents a soft target for politicians. On Monday, Nick Clegg claimed that “ethically wrong” legal tax avoidance costs the economy £42 billion a year. As a tax recruiter, I was particularly interested in whether this might have an impact on the taxation professionals that I work with.

Clegg’s Robin Hood approach is an obvious means for the Government to rake in some much needed cash. My colleague William Hepworth discussed the tightening of transfer pricing rules in Taxation 2 magazine this week so raking in some extra cash through taxation is already on the agenda.

As always though it’s not as simple as closing a couple of loopholes and suddenly the deficit is paid off. Quantifying the impact of tax avoidance on the economy is complex stuff. Business leaders argue these funds are reinvested in job creation: taking people out of the benefits system and getting them paying tax. Ultimately, the Exchequer wins anyway.

Furthermore, high net worth individuals are often entrepreneurs, contributing to the economy in areas too numerous to quantify. They’re also geographically mobile; remove the incentive to be here and they’ll be off quicker than you can say private jet.

Clegg’s ethical argument is also complex. Is it wrong for someone like Philip Green to run a business employing thousands of people in the UK with a turnover in the billions whilst himself being resident in the tax haven of Monaco? Is investing in start ups or venture capital unethical? Is investing in an ISA unethical?

Our tax system is a pretty fine balancing act between encouraging investment in quality business in the UK and ensuring people pay a fair amount for public services. Cutting down on tax avoidance strikes me as great party conference PR but ultimately it’s a minefield. Amidst all these conflicting interests and arguments it’s hard to quantify their success/failure anyway which itself is most convenient don’t you think?

Exchequer, Government, ISA, Legal Tax avoidance, Nick Clegg, Philip Green, Tax, Tax Avoidance, Taxation, Taxation 2, Venture capital, William Hepworth

Well, my foray into the world of the web log: here we go…

Thanks to Alex for her introduction last week. I’ve got a whole range of topics to discuss with you all over the coming months: the recruitment market, developments in the world of taxation, current affairs and, of course, I’ll be sharing my legendary love of sports with you too. The latter no doubt keeping you fully up to date on the ups and downs of my beloved Arsenal FC’s season as well as my own tribulations on golf courses across the Home Counties.

Before we get going, I want to wish Alex Lawrie all the best as she heads off on maternity leave for the next six months. We look forward to hearing all about her new arrival – and hopefully getting some more of delicious her home made jam when we catch up!!

Watch this space over the coming weeks and months for all the latest taxation developments, I’m keen to hear from you as well so please keep your thoughts and comments coming.

Alex lawrie, Arsenal FC, blog, Blogosphere, current affairs, New blogger, recruitment, tax jobs, Tax market, Taxation