18 Jun 2014 11:19am

Deloitte threatened with legal action

The Icebreaker tax fund has threatened Deloitte with legal action after sacking the Big Four firm as legal advisor in its case against HMRC

Deloitte was sacked by Icebreaker after Bill Dodwell, head of tax policy, wrote an article in Tax Adviser magazine, urging readers to “congratulate” a tribunal after it ruled that investors had used the scheme to shelter over £300m.

He wrote, “All members should settle up quickly.”

In a letter to investors, seen by The Times newspaper, Caroline Hamilton, the founder of Icebreaker, said that the fund had instructed solicitors to “take action” against the firm if necessary.

She described the comments made by Dodwell, who has no involvement in the case, as “extraordinary”.

“This appears to be in clear breach of Deloitte’s duties as Icebreaker’s instructing solicitors,” she said.

Icebreaker hit headlines last month after the tax tribunal ruled that the fund, used by over 1,000 members, including high profile participants such as Take That’s Gary Barlow, was a conscious attempt to avoid tax.

The tribunal ruled the scheme was “known and understood by all concerned to be a tax avoidance scheme”.

Deloitte has declined to comment.

Ellie Clayton


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