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BN66 - Time to fight back!!!

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    BN66 - Time to fight back!!!

    I am in the process of preparing a submission to the Treasury Committee, basically taking issue with the following:

    http://www.parliament.the-stationery.../430/43002.htm

    99. Treasury officials told us that:

    Following the introduction of the disclosure rules in 2004, it was disclosed that a number of individuals, particularly in the property industry, had been taking a different interpretation from that which had been announced in 1987 and were continuing, without any active presence in the Isle of Man and only having income in the UK, to be claiming that 99% of their income was effectively covered by the Isle of Man double tax treaty. The action that has been announced here is retrospective. It confirms what was set out quite clearly in 1987 and what was intended by the Isle of Man treaty when it was entered into.


    This is not correct. I have been under enquiry since November 2003, and I know others who have been under the cosh since June 2003. The Treasury/HMRC are making it appear that the alleged dta abuse has only recently come to light, whereas they have been investigating it for at least 5 years!!!

    The Treasury Committee have requested the following response from Government, and I for one am not relying on them to come clean.

    We welcome steps taken by the Government to prevent tax avoidance through the misuse of double taxation treaties by UK residents. We are concerned by the suggestion that the Government has known about this abuse for some time and yet has failed to act. We recommend that the Government set out, in its response to this Report, when it was first alerted to the abuse, why action was not taken earlier and why it considers a 21-year period of retrospection appropriate. We expect the Government to move swiftly to close future abuses of the tax system that are disclosed to them.

    Thankfully, we are not alone in opposing the use of retrospective measures:

    http://www.parliament.the-stationery...30/430we03.htm

    RETROSPECTION

    It is one of the general principles of UK tax law that tax changes are not made with retrospective effect. That said, the Paymaster General's statement that accompanied the December 2004 Pre-Budget Report gave warning of possible retrospective action against avoidance schemes—but only in a limited area and only back to 2004.


    To find that a measure (BN 66) is being introduced which will have retrospective effect back to 1987 is unacceptable. It is not even on an area dealt with by the PMG's statement. The subject of the change may be an avoidance scheme, but that is not an excuse for such far-reaching action which is well beyond "clarification", as claimed by the note. This is a dangerous precedent for the integrity of the UK's tax system.


    I will update this thread in due course.

    If anyone else feels like contacting the Treasury Committee, their email address is [email protected]
    Last edited by DonkeyRhubarb; 30 April 2008, 13:33. Reason: Make title clearer that it relates to MTM

    #2
    Can I have an executive summary?

    Comment


      #3
      Originally posted by Sockpuppet View Post
      Can I have an executive summary?
      Do you mean of the evidence I am submitting?

      Comment


        #4
        go for it Donkey, what with Gordon being humiliated with the recent 10p debacle I think he will consider very carefully any other tax laws that could jeopardise his elections chances and integrity....

        Same old Labour, TAX TAX TAX!!!!!

        New labour eh, not likely!!!!!!

        Comment


          #5
          Background info

          PS. Perhaps I should have mentioned that BN66 relates to certain offshore schemes such as the one offered by MTM/Montpelier

          The legislation proposed in the 2008 budget is summarised here:

          http://www.hmrc.gov.uk/budget2008/bn66.pdf

          Comment


            #6
            Originally posted by DonkeyRhubarb View Post
            Do you mean of the evidence I am submitting?
            no, he means a single line summing up all the above to save us all reading it.

            this is how mgmt work...
            I didn't say it was your ******* fault, I said I was blaming you!

            Comment


              #7
              Originally posted by Sockpuppet View Post
              Can I have an executive summary?
              "I've spent years using dodgy offshore tax schemes and now the chickens are coming home to roost. Please help me justify my greed and stop Hector bending me over and greasing me up."
              "Being nice costs nothing and sometimes gets you extra bacon" - Pondlife.

              Comment


                #8
                Originally posted by DaveB View Post
                "I've spent years using dodgy offshore tax schemes and now the chickens are coming home to roost. Please help me justify my greed and stop Hector bending me over and greasing me up."
                I didn't say it was your ******* fault, I said I was blaming you!

                Comment


                  #9
                  In 1 line

                  Originally posted by scooby View Post
                  no, he means a single line summing up all the above to save us all reading it.

                  this is how mgmt work...

                  'Tax Avoidance/Evasion' (depending on view)

                  Comment


                    #10
                    Retrospective tax legislation acceptable?

                    "I've spent years using dodgy offshore tax schemes and now the chickens are coming home to roost. Please help me justify my greed and stop Hector bending me over and greasing me up."

                    I take it you are happy for the Government to introduce retrospective tax legislation then? What about S660, is that ok too? You may not agree with it but there is a principle at stake here. If you give them an inch they'll take a mile, and next time it could be you.

                    Comment

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