One minute with Tom Scott, partner at McDermott Will & Emery
You are head of the tax department in the London office of McDermott Will & Emery. How is the practice evolving, and have you noticed any trends among clients?
There are now three partners in the London tax group, and I am very lucky to have James Ross and Matthew Herrington alongside me. I would identify a few current trends in the practice. There has been an upturn in transactional work, with more large cross-border deals actually reaching fruition. The tightening of the US regulations has not entirely stifled the ongoing interest in inversions by merger.
On the advisory front, I am seeing the combination of OECD initiatives and unilateral actions by individual countries coming together to produce real pressure on traditional structures in the BEPS area. Complacency may have crept in over the years, as we have experienced more noise than action, but I see real momentum building around the area. In the UK, the potential combination of the hybrid proposals, country by country reporting and the diverted profits tax is powerful enough, even without the morality/‘fair share’ pressure. Things change, and as advisers we need to change with them.
How did you get into tax?
When I was what used to be called an articled clerk at what used to be called Linklaters & Paines, I sat with the then head of tax, Jeremy Skinner. Jeremy was an inspirational figure, and one of the key individuals responsible for the development of standalone corporate tax practices by law firms in the City. He asked me to stay on in tax when I qualified, and I thought ‘Why not?’ – so it is all his fault.
What key lessons have you learned during your years in practice?
The main lesson I’ve learned is that as a tax adviser, or a tax lecturer, you need to work hardest at simplifying the issues and communicating a clear view. Blaise Pascal wrote ‘I have made this letter longer than usual because I have not had the time to make it shorter.’ You need to make the time to understand both the technical and commercial issues, reach a view and convey it in simple language. Another lesson, I think, is that in tax there are no stupid questions. It is such a complicated and intimidating area of law that it can be tempting to stay quiet when something doesn’t make sense. Don’t, and speak up.
You have recently been appointed a part-time judge in both the First-tier and Upper-tier Tax Tribunals. Which aspect of the role are you most looking forward to?
I am looking forward to this role with a mixture of excitement and sheer terror. Having now met my fellow tax judges, who really are an impressive bunch, I feel even more honoured to have been appointed. The aspect I’m most looking forward to is applying my knowledge and experience not to advise but to decide. I am used to weighing up arguments and interpretations to form a view on the law, but it will be good to do that freed from any commercial pressures or client constraints.
Tell us a secret
I am a lifelong fan of rock music. I went to school in Newcastle with one Gordon Sumner, who later made the laughable decision to change his name to Sting. I am hard of hearing in one ear courtesy of The Who at Newcastle Odeon in 1973. And I have an embarrassingly large collection of Beatles records, including over 20 different copies of the white album alone. Happily, all experience is valuable. I counsel anyone whose career is stuck in a rut to listen to the closing chorus of All my life by Foo Fighters, and anyone seeking motivation to get up in the morning and go to work to listen to Bills by LunchMoney Lewis.
One minute with Tom Scott, partner at McDermott Will & Emery
You are head of the tax department in the London office of McDermott Will & Emery. How is the practice evolving, and have you noticed any trends among clients?
There are now three partners in the London tax group, and I am very lucky to have James Ross and Matthew Herrington alongside me. I would identify a few current trends in the practice. There has been an upturn in transactional work, with more large cross-border deals actually reaching fruition. The tightening of the US regulations has not entirely stifled the ongoing interest in inversions by merger.
On the advisory front, I am seeing the combination of OECD initiatives and unilateral actions by individual countries coming together to produce real pressure on traditional structures in the BEPS area. Complacency may have crept in over the years, as we have experienced more noise than action, but I see real momentum building around the area. In the UK, the potential combination of the hybrid proposals, country by country reporting and the diverted profits tax is powerful enough, even without the morality/‘fair share’ pressure. Things change, and as advisers we need to change with them.
How did you get into tax?
When I was what used to be called an articled clerk at what used to be called Linklaters & Paines, I sat with the then head of tax, Jeremy Skinner. Jeremy was an inspirational figure, and one of the key individuals responsible for the development of standalone corporate tax practices by law firms in the City. He asked me to stay on in tax when I qualified, and I thought ‘Why not?’ – so it is all his fault.
What key lessons have you learned during your years in practice?
The main lesson I’ve learned is that as a tax adviser, or a tax lecturer, you need to work hardest at simplifying the issues and communicating a clear view. Blaise Pascal wrote ‘I have made this letter longer than usual because I have not had the time to make it shorter.’ You need to make the time to understand both the technical and commercial issues, reach a view and convey it in simple language. Another lesson, I think, is that in tax there are no stupid questions. It is such a complicated and intimidating area of law that it can be tempting to stay quiet when something doesn’t make sense. Don’t, and speak up.
You have recently been appointed a part-time judge in both the First-tier and Upper-tier Tax Tribunals. Which aspect of the role are you most looking forward to?
I am looking forward to this role with a mixture of excitement and sheer terror. Having now met my fellow tax judges, who really are an impressive bunch, I feel even more honoured to have been appointed. The aspect I’m most looking forward to is applying my knowledge and experience not to advise but to decide. I am used to weighing up arguments and interpretations to form a view on the law, but it will be good to do that freed from any commercial pressures or client constraints.
Tell us a secret
I am a lifelong fan of rock music. I went to school in Newcastle with one Gordon Sumner, who later made the laughable decision to change his name to Sting. I am hard of hearing in one ear courtesy of The Who at Newcastle Odeon in 1973. And I have an embarrassingly large collection of Beatles records, including over 20 different copies of the white album alone. Happily, all experience is valuable. I counsel anyone whose career is stuck in a rut to listen to the closing chorus of All my life by Foo Fighters, and anyone seeking motivation to get up in the morning and go to work to listen to Bills by LunchMoney Lewis.
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