Now new SNP auditors face investigation into ‘abusive tax avoidance’
Fresh blow for Nationalists as f irm is reported to regulators
THE SNP’s new auditors are being investigated by finance regulators for promoting an ‘abusive tax avoidance’ scheme to their customers, The Mail on Sunday can reveal.
In a move set to further embarrass the embattled party, watchdogs are examining claims that an offshoot of Manchester-based AMS Accountants Group has been helping people avoid tax on private school fees.
The strategy – promoted by AMS-linked Signature Tax – is said to enable parents to pay the fees out of their pre-tax income in a bid to save tens of thousands of pounds.
News of the probe will be a blow to Humza Yousaf, whose party spent more than six months searching for a replacement auditor after Johnston Carmichael – which the SNP had used for a decade – quit in September.
The firm’s departure was revealed after former SNP chief executive and Nicola Sturgeon’s husband, Peter Murrell, was arrested in a police raid at the couple’s home in Glasgow in April.
Ex-party treasurer Colin Beattie was also later arrested amid claims of ‘missing’ independence funds of around £600,000. Detectives have seized a £110,000 luxury motorhome and jewellery as part of the probe.
Both Mr Murrell and Mr Beattie were released without charge pending further investigations.
Now Dan Neidle, the lawyer credited with bringing down Tory Party chairman Nadhim Zahawi by exposing his tax affairs, has complained to two financial regulators over the SNP’s new auditors, including the Institute of Chartered Accountants in England and Wales (ICAEW).
In letters sent to the regulators – seen by this newspaper – he accused the company of failing to seek approval from HMRC for the alleged ‘avoidance’ strategy.
Mr Neidle said: ‘Signature Tax is promoting an abusive tax avoidance scheme that has no realistic prospect of success. Any parents buying into it to save on school fees will end up with a large tax bill. It’s a disgrace, and I’ve asked Signature’s regulators to intervene.’
Opposition parties said the new investigations raised further questions around transparency. Tory MSP Craig Hoy said: ‘The situation surrounding the SNP’s finances has become increasingly murky and it now appears their new auditors have questions to answer too.
‘As they race to get their accounts signed off, both the SNP and the auditors must be fully transparent about their operations.’
Last month, the party managed to persuade AMS Accountants Group to audit both its Westminster and main party accounts amid concerns they could lose out on more than £1 million of vital ‘short money’.
The filing of audited accounts by May 31 is a condition for the party’s Westminster group to get Parliamentary funds to support the work of its MPs. Audited accounts for the party must also be filed in July to satisfy the Electoral Commission.
Mr Yousaf has stated he is ‘confident’ AMS Accountants will meet the deadlines. Last night the ICAEW said it would ‘investigate any information which suggests a member may have breached’ the rules.
AMS Accountants insisted the school fees scheme was ‘fully legal and does not represent tax avoidance’. The firm added: ‘Regarding having been referred to the regulators, our group had already selfreferred to the regulatory bodies, and to HMRC, voluntarily.
‘One of our regulators has already notified us there is “no follow-up required”. We are confident no further action will be taken in respect of the group’s tax advice.’
‘It appears their auditors have questions to answer’