An accountancy body has called the case for reform of a Scottish business vehicle that has been abused by fraudsters and gangs “compelling”.

The Association of Accountancy Technicians (AAT), which represents around around 50,000 accountants and other professionals, urged the UK government to bring an end to Scottish Limited Partnerships (SLPs).

Some 27,000 SLPs have been established in recent years and comprise partners which are shell corporations based in places including Panama and Belize.

Adam Harper, director of strategy and professional standards at the AAT, told The Herald the secrecy rules surrounding SLPs made them open to abuse.

He said: “A lack of transparency appears to be the only obvious advantage of a Scottish Limited Partnership.

“There’s no real economic benefit to Scotland either, so the case for reform is compelling.”

Last month, the UK government launched a consultation on reform of SLPs.

In a formal response, Mr Harper said he thought SLPs should be treated just like limited companies – meaning they would have to file audited accounts, reveal their “person of significant control” and have a UK address.

Alan Soppitt, a partner at Burness Paull, told The Times in January that fears over SLPs were unfounded and that they are no different to their English counterparts.