Accountancy firm RSM Tenon has suspended a line of specialist tax products after a government clampdown on tax avoidance.
In March chancellor George Osborne introduced the general anti-avoidance rule (GAAR), forcing firms to be more transparent about the tax services they provide to clients.
RSM Tenon – which employs hundreds in the West Midlands and recently changed its chairman and chief executive after posting a loss – said the decision to stop the service would have limited impact on its revenue.
In a trading statement, the group said: “Following the announcement of a general anti-avoidance rule in the recent UK government budget, we have decided not to offer further new products through our Specialist Tax service line.
“Whilst this will have limited impact on revenues in this financial year (as these had substantially been earned prior to the budget statement), we will not earn revenues in this service line going forward.”
The news comes at time of considerable upheaval at the national business advice firm, which issued a profit warning earlier this year prompting the departures of its chairman Bob Morton and chief executive Andy Raynor.
The firm said its business remains ‘resilient’ in the challenging conditions and that it was ‘generally’ performing in line with management’s expectations as it aims wipe £6 million off costs.
In an accompanying statement chief executive Chris Merry said: “We are making good progress in delivering the actions that we identified in our interim results announcement on 29 February 2012.
“We are, and continue to be, committed to our clients and our people. Our clients continue to receive the same high levels of service that they have always enjoyed. I would like to thank our clients and our people for their continued support.”