Sloane Robinson Founder Blames Adviser For Tax Problem

Jan 13 2014 | 9:41am ET

Sloane Robinson co-founder Hugh Sloane is suing his former tax advisers over a deduction that wasn't.

Sloane, who stepped down as CEO of his hedge fund in 2012, invested £2.4 million in a film investment company run by investment bank Zeus Capital in 2008. By the end of the year, it was a total loss.

Still, the news was not all bad for Sloane, since, according to his lawsuit, Saffery Champness had told him that losses on the venture would qualify for tax relief. But when he sought to claim that relief, Britain's Revenue and Customs would have none of it—and opened investigations both into the "Zeus Scheme" and into Sloane's tax return.

According to Sloane, Saffery partner Gilbert Holbourn had ignored a warning from another partner at the firm that the Zeus deal was "frankly suspicious," and failed to disclose that it received a £123,264 commission from Zeus.

Sloane's lawsuit called Saffery's actions "astonishing and repugnant." He is seeking £2.5 million for breach of fiduciary duty and negligent misrepresentation.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of