ASOS founder to sue over Guernsey move

Monday 15 April 2019

The multi-millionaire founder of shopping website ASOS is taking action against the accountancy firm BDO and its Guernsey office through the UK High Courts.

The Times reported over the weekend that Quentin Griffiths, who co-founded the company in 2000, was given 'incorrect advice' on how to move to the island so he could pay reduced tax in the UK.

A court case has been launched between Mr Griffiths (pictured above) and BDO, the accountancy firm which advised on the move, including its Guernsey-based Tax Director. Mr Griffiths reportedly lost £4 million in a tax-avoidance move to the island with The Times saying Mark Savage from BDO's Guernsey office advised the businessman on the move which he said included terms which 'lurked in the small print'. 

The case centres around the amount of time it is possible to live in Britain per-year while still managing to avoid paying tax. Mr Griffiths said he was advised by the UK BDO partner that he could spend up to 90 days a year but the figure is in fact 45.

He is also looking to recover the £245,000 he spent on a house in the island. 

Pictured: The ASOS website. 

Guernsey-based Tax Director at BDO Mark Savage advised on the move, The Times reported:

"Griffiths said that in the small print of the agreement with the Guernsey division, he had agreed to cap any liability for negligent advice to just £100,000, and that any claims he might bring would have to be launched within three years. He said 'no step was taken' by BDO to make sure he had read the terms and conditions."

BDO confirmed the claim could be brought to the UK High Courts.

“We will be defending the claim brought against us, which relates to tax advice given by BDO in the UK and in Guernsey between 2013 and 2015, but are unable to comment further at this stage given the legal process is ongoing," a spokesperson said.