Breathe easier

KEY POINTS

• Court of Appeal overturns High Court judgment.
• Accountant not expected to understand the bearer warrant scheme.
• Could not have seen that domicile would have affected liability.

The case of Mehjoo v Harben Barker [2013] EWHC 1500 caused consternation when it first appeared with suggestions that it obliged advisers to tell their clients about tax avoidance schemes.

While that was an exaggeration I raised some of the other concerning implications in my article Too big to keep?

Fortunately the High Court decision has now been overturned by the Court of Appeal but before relaxing too much advisers should read the analysis of the judgment below thinking about what would have happened if the facts were just a little less favourable to the accountants concerned.

Facts

Mr Mehjoo was born in Iran...