High profile Stamp Duty ‘mitigation’ expert expelled from institute
Chartered Institute of Taxation has expelled David Hannah of Cornerstone Tax after an exhaustive investigation into his activities following complaints from HMRC and clients.
A taxation expert with significant connections to the UK’s prime property and investment sectors has been expelled from a leading trade organisation.
The Chartered Institute of Taxation (CIOT)’s Taxation Disciplinary Board, which runs its complaints and disciplinary scheme, has released a judgement that expels David Hannah (pictured) the Group Chairman of tax advisory firm Cornerstone Tax.
The firm has for many years promoted itself as a group of companies specialising in advice on stamp duty and other taxes for those completing high-value property purchases.
Hannah, who is a high-profile figure within the property industry, faced two sets of complaints from both HMRC and an unnamed couple who sought advice from him on a stamp duty ‘mitigation’ scheme which was later challenged by HMRC following an inquiry into its validity.
All of the charges against Hannah were proven by CIOT’s Taxation Disciplinary Board which has said the charges are proven, sanctioning Hannah and expelling him from the organisation and, in the case of the couple, ordering him to pay compensation.
Charges
The charges that followed the investigation, which covers a period stretching back to 2011, was heard in June this year but the sanctions against Hannah have only now been revealed.
In the first case he was charged with “knowingly providing HMRC with a document that contained an error with the intention that HMRC should rely upon it as an accurate document”.
In the second case, which followed a complaint by a client, the Board heard that Hannah had failed to advise ‘Mr and Mrs D’ appropriately about the risks of joining a Stamp Duty mitigation scheme; failed to respond appropriately to an HMRC investigation or keep his client updated and later stopped corresponding with them; failed to ensure the business of which he was a director was conducted with honesty and integrity and failed to uphold CIOT’s professional standards.
A second complaint from another couple could not be investigated because it did not fall within the jurisdiction of CIOT’s disciplinary board, to which Hannah must now pay costs of £36,365.
Comment from Cornerstone Tax
A spokesperson has told The Neg: “This is a matter of an ongoing legal dispute between Mr Hannah and the Chartered Institute of Taxation. Owing to this we are unable to comment at present.”
