RSM Tenon has suspended new product offers through its specialist tax service arm following the Government’s announcement of an anti-avoidance rule in the 2012 Budget.
In the 2012 Budget, Chancellor George Osborne announced plans to introduce general anti-avoidance rules in a bid to improve transparency and counteract the avoidance of tax.
A statement from RSM Tenon says: “Whilst this will have limited impact on revenues in this financial year, we will not earn revenues in this space going forwards.”
RSM Tenon says it is now 75 per cent of the way through its cost-cutting programme, announced in February 2012. The programme is designed to save £14m of annual employment costs and is set to be completed next month.
RSM Tenon has been in the headlines for numerous reasons in the past few months. Last month, the firm announced chairman Adrian Martin and deputy chairman Michael Findlay are stepping down from the board after only three months.
Martin was appointed chairman in January 2012, with Findlay as deputy chairman as well as taking on the role of senior independent director. The pair took on their roles following the decision of former chairman Bob Morton and chief executive Andy Raynor to step down.
RSM Tenon and its auditors PricewaterhouseCoopers were in a row over the quality of the firm’s auditing last month . At the time the group announced Morton and Raynor’s departure from the firm, RSM Tenon said it was conducting a review which may lead to restatements of its accounts to June 30, 2011 as a prior-year adjustment as well as to incur certain “non-recurring, non-cash charges” in the six months to December 31, 2011, that were not included in additional expectations.
According to The Times, this information emerged during due diligence carried out by another auditor on the firm as part of a potential takeover by private equity firm HgCapital in the second half of last year.
RSM Tenon CEO Chris Merry says: “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.”