There have been several well-documented situations where a high-profile individual’s tax planning has come under scrutiny, and the results have been unfavourable. A few readers have asked about whether their income and Inheritance Tax planning trusts are the right or wrong side of the Revenue.
Much stems from the publicity regarding high-profile individuals’ mistakes. Many of these have agents who often determine the individual’s financial adviser, and with such complex financial issues, schemes can be put forward by an ‘adviser’, keen to impress, that sail way beyond ‘close to the wind’.
In 2016, Lionel Messi received a 21-month prison sentence for evasion of taxes when his advisers had used offshore companies to protect his income from image rights. The sentence was then replaced with a fine as was his fathers.
