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EBTs

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    EBTs

    I'm not a PCG member, so I can't call their team and find out what they think of them, hence I'd like an opinion of EBTs here.

    I can't see what the problem is with these if you're just an employee and it's you're company's responsibility to pay you net of deductions. However, I have been naive before.

    #2
    You are a beneficiary of the trust which could put you in a tricky position should the IR decide to inspect the scheme.

    They will look at the overall relationship between client, agency, trust & employee/beneficiary and if it's deemed to be a tax avoidance scheme then you could be deemed liable for additional tax and possibly penalties as well. :x

    Comment


      #3
      re

      You are a beneficiary of the trust which could put you in a tricky position should the IR decide to inspect the scheme.

      They will look at the overall relationship between client, agency, trust & employee/beneficiary and if it's deemed to be a tax avoidance scheme then you could be deemed liable for additional tax and possibly penalties as well.
      So if the trust has previously been ok'd by the IR, then you should be OK to join the scheme. Not sure how these work, I am thinking about offshore schemes in particular.

      Comment


        #4
        Re: re

        > You are a beneficiary of the trust which could put you in a tricky position should the IR decide to inspect the scheme

        It's a crying shame seeing you posting such pathetic bollux Darren. Maybe if you tried to match the fees and service offered by my accountant ...

        www.************.co.uk

        Comment


          #5
          Re: re

          You are a beneficiary of the trust which could put you in a tricky position should the IR decide to inspect the scheme.

          They will look at the overall relationship between client, agency, trust & employee/beneficiary and if it's deemed to be a tax avoidance scheme then you could be deemed liable for additional tax and possibly penalties as well.
          Now come on Darren we both know the UK government has no jurisdiction over offshore schemes, especially those they use themselves. If you know different, please quote examples.

          Comment


            #6
            Re: No jurisdiction over offshore schemes

            No, but they do have jurisdiction over the individual receiving the money. And as a UK resident you are liable to declare and pay UK tax on your worldwide earnings from whatever source

            Now, I don't know how these EBT's pass the money to the individual (nor how it gets there in the first place) so there is some scope there, but ISTM that were the revenue minded to target the individual recipient of money from the EBT, they would not find it that difficult to show that the money was 'income' and not a gift and that it should have been declared as such on a Tax return. It should be clear that any individual signing up for an offshore scheme and not declaring the funds that he receives is risking a prosecution for evasion.

            tim

            Comment


              #7
              Re: No jurisdiction over offshore schemes

              You are logically correct Tim but do you imagine that these EBT schemes would exist at all if your assumptions were correct.
              The income does not appear on a self assessment form because it is a loan.

              These schemes used to operate as UK companies but due to legislation introduced in 2002 have moved offshore.

              I view these things with deep suspicion but the more I find out about them the more untouchable they appear to be.

              To be honest you need to spend a little time researching the subject before coming to simplistic conclusions.

              HTH

              Rhino

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                #8
                Re: No jurisdiction over offshore schemes

                Tried the PCG helpline and it wasn't very helpful!

                The person I was put thru to didn't even know that these schemes were being targetted, even though she was a 'tax expert' who followed the budget v.closely.

                Comment


                  #9
                  Re: No jurisdiction over offshore schemes

                  I don’t think the PCG would be able to help you much with this question. Their general advice is to avoid schemes like this.

                  Comment


                    #10
                    what about this then...

                    money for your services gets paid to your Isle of Man company which then transfers your "salary" to another off shore banking account which you can access via debit and credit cards etc.

                    No money coming in to England at all and no tax payable. Would that work?

                    Mailman

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