Been Mis-sold a Tax Avoidance Scheme?

PPI style compensation now hits the tax avoidance industry

Rebus Investment Solutions, the “Investors Champion”, is bringing claims on behalf of the victims of mis-sold tax avoidance schemes.

With claims estimated by Rebus to be in the region of £20 – 40 billion, the tax avoidance market could be greater than the mis-selling of PPI.

Mis-selling of tax avoidance schemes generally occurs when the promoted schemes are deemed to be contrived, with hardly any chance of functioning. Furthermore, many of the firms who promote these schemes to their clients are acting outside of the authorisation of the Financial Services Authority (FSA).

Alleged negligence claims regarding the mis-sale of tax avoidance schemes are being prepared against 90 advisory companies, which include accountancy firms, independent financial advisors, boutique firms and law firms. Whilst many of these would prefer to settle out of court, due to the six year statutory limit on making claims, it has been necessary for many claims to begin by filing in court.

According to Richard Rhys of Rebus, firms of accountants involved in promoting these tax avoidance products, although exempted by the FSA and their own professional bodies, are actually carrying out activities “beyond their regulatory scope.”