One minute with Michael Cashman, partner in Dorsey’s tax group.
What’s keeping you busy at work?
It’s a fairly typical mix of work at the moment. I am working on a number of M&A transactions, all of which are domestic UK deals, and I am also advising on various reorganisations. One interesting matter involves a review of a multinational group’s IP holding structure, to determine whether it is BEPS compliant and if it could be more tax efficient. In addition, I’m involved in the establishment of a new business in the Far East and, somewhat unusually, establishing a horse training business in Europe – both projects are for US clients.
If you could make one change to tax law or practice, what would it be?
I think the UK tax system has become overly complicated, and ideally the tax legislation should be simplified. The UK tax legislation is currently the longest in the world – I never thought it would be more complex than the US tax code! – and there seem to be significant increases in the legislation with each year’s Finance Act. I recall the chancellor saying at the time of the last Budget that he would not be introducing significant changes to the tax rules, and then a Finance Bill in excess of 300 pages was released.
I’d also like to see legislation which is not very widely drafted and then scaled back by HMRC guidance.
What do you know now that you wish you’d known at the start of your career?
It is as important to focus on interpersonal and business development skills as it is to focus on gaining technical tax skills and knowledge.
It’s also important to try to gain an understanding in wider areas. For example, understanding the financial drivers and objectives of transactions helps you to understand the commercial objectives of your clients, and how tax structuring can help them to attain their commercial objectives.
Are there any new rules that are causing a particular problem?
I’m not sure whether the diverted profit tax (DPT) rules would fall within the ambit of this question, but I believe that it would be helpful to have more HMRC guidance on how the rules will apply in practice and how enquiries will be handled by HMRC – particularly given the complexity of the rules and the potential for them to apply in situations involving commercial arrangements with real substance.
The recently announced profit diversion compliance facility (PDCF) suggests a willingness by HMRC to work collaboratively with taxpayers, and provides taxpayers with an opportunity to have some control over how their dealings with HMRC will be conducted where the DPT rules could apply.
It will be interesting to see how many taxpayers are willing to participate in the PDCF, and the attitude and approach which is taken by HMRC in relation to reports which are received.
What should we be looking out for in 2019?
I wish I had a crystal ball and could tell you what will happen with Brexit!
One area I am watching with interest is the BEPS project, and the gathering pace of the implementation by a growing number of countries. A country to watch in particular is India, with an anticipated overhaul of the Indian tax system, together with the implementation of the BEPS project predicted for 2019.
And finally, you might not know this about me but…
I’m an Australian who supports AFC Wimbledon. Also, I once turned down the chance to hang out with Simon Le Bon, and I think I’m unique in having a structuring recommendation turned down by Michael Jackson for being too ‘off the wall’!
One minute with Michael Cashman, partner in Dorsey’s tax group.
What’s keeping you busy at work?
It’s a fairly typical mix of work at the moment. I am working on a number of M&A transactions, all of which are domestic UK deals, and I am also advising on various reorganisations. One interesting matter involves a review of a multinational group’s IP holding structure, to determine whether it is BEPS compliant and if it could be more tax efficient. In addition, I’m involved in the establishment of a new business in the Far East and, somewhat unusually, establishing a horse training business in Europe – both projects are for US clients.
If you could make one change to tax law or practice, what would it be?
I think the UK tax system has become overly complicated, and ideally the tax legislation should be simplified. The UK tax legislation is currently the longest in the world – I never thought it would be more complex than the US tax code! – and there seem to be significant increases in the legislation with each year’s Finance Act. I recall the chancellor saying at the time of the last Budget that he would not be introducing significant changes to the tax rules, and then a Finance Bill in excess of 300 pages was released.
I’d also like to see legislation which is not very widely drafted and then scaled back by HMRC guidance.
What do you know now that you wish you’d known at the start of your career?
It is as important to focus on interpersonal and business development skills as it is to focus on gaining technical tax skills and knowledge.
It’s also important to try to gain an understanding in wider areas. For example, understanding the financial drivers and objectives of transactions helps you to understand the commercial objectives of your clients, and how tax structuring can help them to attain their commercial objectives.
Are there any new rules that are causing a particular problem?
I’m not sure whether the diverted profit tax (DPT) rules would fall within the ambit of this question, but I believe that it would be helpful to have more HMRC guidance on how the rules will apply in practice and how enquiries will be handled by HMRC – particularly given the complexity of the rules and the potential for them to apply in situations involving commercial arrangements with real substance.
The recently announced profit diversion compliance facility (PDCF) suggests a willingness by HMRC to work collaboratively with taxpayers, and provides taxpayers with an opportunity to have some control over how their dealings with HMRC will be conducted where the DPT rules could apply.
It will be interesting to see how many taxpayers are willing to participate in the PDCF, and the attitude and approach which is taken by HMRC in relation to reports which are received.
What should we be looking out for in 2019?
I wish I had a crystal ball and could tell you what will happen with Brexit!
One area I am watching with interest is the BEPS project, and the gathering pace of the implementation by a growing number of countries. A country to watch in particular is India, with an anticipated overhaul of the Indian tax system, together with the implementation of the BEPS project predicted for 2019.
And finally, you might not know this about me but…
I’m an Australian who supports AFC Wimbledon. Also, I once turned down the chance to hang out with Simon Le Bon, and I think I’m unique in having a structuring recommendation turned down by Michael Jackson for being too ‘off the wall’!
