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Actors’ adviser fails to act on advice
Key points
- The director took a low salary from her company but failed to repay the director’s loan account each year.
- A substantial tax charge arose under CTA 2010 s 455 which was more than the company could afford.
- The accounts entry for outstanding loans was changed to drawings but the court said this had no legal effect.
- What can the adviser do when the client does not act on their advice?
My dad had a favourite saying: ‘Never put off till tomorrow what you can do next week!’ That echoed down the years for me as I read a recent case concerning the insolvency of an owner managed business J Bass and others v B Buchanan (tinyurl.com/4ud9aset).
If ever there was an object lesson on when not to follow my father’s advice this is it.
Substantial business
The taxpayer (Mrs B) through her company provided...
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