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Controversial accountancy Christopher Lunn & Co (CLAC) will no longer be treated as a tax agent, as the Commissioners for Revenue & Customs have again chosen to withdraw the firm’s status.
The decision, finalised today, has immediate effect, as the East Sussex-based CLAC remains the subject of a criminal investigation by the taxman following allegations of irregularities into the accounts and tax returns of clients, most of whom work in the television industry.
The company’s tax agent status was restored in March, after a judicial review ruled that the taxman acted unlawfully in a procedurally unfair manner when commissioners Mike Eland and Melanie Dawes chose in late 2010 to put an end to HMRC's dealings with CLAC. The department was instructed to reconsider its withdrawal of the accountancy’s agent status.
CLAC’s legal representative, McGrigors law firm, declined to comment on the latest development in its client’s case, but a spokesperson for the accountancy said, 'We believe HMRC have acted wrongly and improperly, and we will be contacting them to demand an explanation of their conduct.'
Dave Hartnett and Steve Lamey were the commissioners to take the decision. Mr Hartnett, HMRC’s permanent secretary for tax, said the department chooses to stop dealing with tax agents ‘only in exceptional circumstances where we have reason to believe there may be serious irregularities in tax returns and accounts.’
The Revenue says it will write to all CLAC clients, past and present, to inform them of the commissioners’ decision. Taxpayers who believe there may be irregularities in their tax affairs are invited to contact the department on 0113 228 3693.
