An HM Revenue & Customs investigation into a £31m tax avoidance scheme has been delayed after an HMRC officer was arrested.
The Times reports David Duthie, a member of the 12-person team investigating film tax partnerships set up by Future Capital Partners, has been arrested on suspicion of wrongdoing.
The paper reports Edinburgh-based Duthie is involved in dozens of other tax cases which could be reviewed following his arrest.
Duthie had been involved in preparing witness statements against Future Capital Partners which set up two film scheme partnerships that brought in around £31m in investment.
In 2011, a court ruled the schemes were not trading and denied the investors any tax relief. FCP appealed the ruling with a hearing set for this month.
HMRC filed an emergency application for adjournment on 29 April following Duthie’s arrest.
An HMRC spokesman says: “All allegations of improper behaviour against HMRC staff are taken very seriously and appropriate action taken. For legal reasons we cannot comment further at this time.”