One minute with Charlotte Sallabank, partner at Jones Day.
What’s in your in-tray?
A broad mixture: a securitisation; a private placement falling within the new withholding tax exemption; advising management shareholders with respect to an IPO; the tax reporting requirements of a Japanese fund; advising a UK purchaser on a global acquisition in 32 jurisdictions.
What sets the tax team at Jones Day apart from other law firms?
As a global law firm we have excellent worldwide tax expertise but, in particular, we have very strong pan European tax coverage with tax specialists in seven European countries. Everyone works very collaboratively and we can provide clients with expert tax advice very quickly. We are a single partnership, so there are no issues over ‘ownership’ of clients and consequently we can provide a seamless service to clients.
What big development in tax should we be looking out for in 2016?
Undoubtedly this has to be the implementation of the BEPS actions and the proposed EU anti-tax avoidance directive. The UK has taken the lead in introducing some of the BEPS actions into domestic law already, such as the anti-hybrid rules to neutralise the effect of hybrid mismatch arrangements in accordance with the recommendations of action 2, but what of other jurisdictions? The manipulation of tax regimes by MNEs is so much in the public eye as a result of the extensive media coverage that even the most reluctant governments will have to bow to public pressure and introduce the BEPS actions in a move to support the G20’s aim of ensuring tax is paid where the profits and value are generated. The big question, however, is how quickly and to what extent. Similarly, with the proposed anti-avoidance directive, how much push back will there be from member states?
If you could make one change to UK tax law or practice, what would it be?
The non-deductibility of a nanny’s salary is one of the most blatant examples of double taxation in the UK system. Whilst I understand concerns that people might start paying salaries to their relatives, where a nanny is an unconnected person their salary should be an allowable deduction for his or her employer. For the fully taxed salary to be paid out of fully taxed income is grossly unfair.
Looking back on your career to date, what key lesson have your learned?
Not to assume that just because a point occurs to you, it will have occurred to everyone else as well.
Aside from your immediate colleagues, whom in tax do you most admire?
I am a great admirer of Court of Appeal and Supreme Court Judges. Their ability to understand complex tax legislation very quickly and, moreover, to seize on the key point is awe inspiring. But if I have to name one, I would say Lord Hoffmann – he has written some inspired tax judgments, often with a touch of dry humour. I was privileged to act for the taxpayer in BMBF v Mawson and will never forget Hoffmann’s comment during the House of Lords hearing that ‘Furniss has become a stick for the intellectually lame’.
What effect would Brexit have on the UK tax system?
This is an interesting one. Leaving aside the obvious issues of the future of VAT and CJEU decisions, without the ‘constraints’ of the EU freedoms, to what extent would the UK revert to the UK/non-UK divide which used to exist in many areas of our direct tax legislation (e.g. tax grouping only of UK resident companies, exit charges)? And where we have extended reliefs to within the EU or EEA, would these then be cut back to apply within the UK only?
Tell us a secret.
I’m a big Harry Potter fan and have had the great pleasure of reading all seven books aloud to each of my five children.
One minute with Charlotte Sallabank, partner at Jones Day.
What’s in your in-tray?
A broad mixture: a securitisation; a private placement falling within the new withholding tax exemption; advising management shareholders with respect to an IPO; the tax reporting requirements of a Japanese fund; advising a UK purchaser on a global acquisition in 32 jurisdictions.
What sets the tax team at Jones Day apart from other law firms?
As a global law firm we have excellent worldwide tax expertise but, in particular, we have very strong pan European tax coverage with tax specialists in seven European countries. Everyone works very collaboratively and we can provide clients with expert tax advice very quickly. We are a single partnership, so there are no issues over ‘ownership’ of clients and consequently we can provide a seamless service to clients.
What big development in tax should we be looking out for in 2016?
Undoubtedly this has to be the implementation of the BEPS actions and the proposed EU anti-tax avoidance directive. The UK has taken the lead in introducing some of the BEPS actions into domestic law already, such as the anti-hybrid rules to neutralise the effect of hybrid mismatch arrangements in accordance with the recommendations of action 2, but what of other jurisdictions? The manipulation of tax regimes by MNEs is so much in the public eye as a result of the extensive media coverage that even the most reluctant governments will have to bow to public pressure and introduce the BEPS actions in a move to support the G20’s aim of ensuring tax is paid where the profits and value are generated. The big question, however, is how quickly and to what extent. Similarly, with the proposed anti-avoidance directive, how much push back will there be from member states?
If you could make one change to UK tax law or practice, what would it be?
The non-deductibility of a nanny’s salary is one of the most blatant examples of double taxation in the UK system. Whilst I understand concerns that people might start paying salaries to their relatives, where a nanny is an unconnected person their salary should be an allowable deduction for his or her employer. For the fully taxed salary to be paid out of fully taxed income is grossly unfair.
Looking back on your career to date, what key lesson have your learned?
Not to assume that just because a point occurs to you, it will have occurred to everyone else as well.
Aside from your immediate colleagues, whom in tax do you most admire?
I am a great admirer of Court of Appeal and Supreme Court Judges. Their ability to understand complex tax legislation very quickly and, moreover, to seize on the key point is awe inspiring. But if I have to name one, I would say Lord Hoffmann – he has written some inspired tax judgments, often with a touch of dry humour. I was privileged to act for the taxpayer in BMBF v Mawson and will never forget Hoffmann’s comment during the House of Lords hearing that ‘Furniss has become a stick for the intellectually lame’.
What effect would Brexit have on the UK tax system?
This is an interesting one. Leaving aside the obvious issues of the future of VAT and CJEU decisions, without the ‘constraints’ of the EU freedoms, to what extent would the UK revert to the UK/non-UK divide which used to exist in many areas of our direct tax legislation (e.g. tax grouping only of UK resident companies, exit charges)? And where we have extended reliefs to within the EU or EEA, would these then be cut back to apply within the UK only?
Tell us a secret.
I’m a big Harry Potter fan and have had the great pleasure of reading all seven books aloud to each of my five children.
