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BN66 - JR Judgement Day

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    Should I be Optimistic, Realistic or Pessimistic?

    "To make a decision in our favour would have been a seminal moment in legal history".

    Quite, so we should not have been encouraging each other with ever more optimistic posts. The judge appears to have summed up the case as succinctly as possible given the complexities, and we should ignore childish comments about the judge 'being got at'. This isn't a game and it isn't a television show and it isn't taking place in Sicily.

    I was told when I joined the scheme that, in the event of a challenge from HMRC, Montpelier (MTM as it was then) would take the case to as high a court as necessary and that is exactly what they are doing. They must be incurring considerable costs.

    There were never any guarantees that the arrangement would work going forward but I think that the retrospective nature of the HMRC attack is unprecedented and unfair. This retrospective aspect could change the entire taxation landscape, in the future and in the past, for all UK citizens. This would include BBC correspondants who could find their agreed expense allowances, disallowed 23 years later.

    We must all now accept that there is a strong possibility of the final outcome going against us and we therefore need to save as much as we can to cover our potential liabilities. I know that many of you will disagree with this and indeed, without a background in Law, it is impossible to calculate the percentage chance we have of winning.

    I hope that Montpelier's lawyers can find some issues with the judge's comments and that we have solid grounds for appeal but we would all do well not to be blindly optimistic.

    The 'tax dodgers' headline beggars believe and has made me very angry when everything we have done has been explained and documented every year on our self assessment forms. Contrast that with MPs duck pond expenses.

    Comment


      Originally posted by SantaClaus View Post
      This shows how naive the media really is. There is no recognition in his reply (or any of the papers) that this is a landmark case that will change our taxation system for good. Retrospection has effectively been given the green light today. Maybe you should write back and tell that to the Pillock, I mean Pollock.
      Yeah, he was somewhat less pious about this subject in October when putting together an handy Q & A article on how to be a non-Dom and make use of DTA's.

      http://news.bbc.co.uk/1/hi/business/8290286.stm

      Comment


        Originally posted by SantaClaus View Post
        This shows how naive the media really is. There is no recognition in his reply (or any of the papers) that this is a landmark case that will change our taxation system for good. Retrospection has effectively been given the green light today. Maybe you should write back and tell that to the Pillock, I mean Pollock.
        This isn't a landmark case that "green lights" retrospective tax law changes. The finance act 1987 contains a clause which acts retrospectively. It's actually referenced in today's judgement.

        Also, the legality of these schemes has never been established. The legislation which is being challenged in this case closes a potential loophole, but one which has never been tested in court.
        While you're waiting, read the free novel we sent you. It's a Spanish story about a guy named 'Manual.'

        Comment


          My last contract was in media. They say whatever is required to get people reading.

          Comment


            Originally posted by PurpleTurtle View Post
            Yeah, he was somewhat less pious about this subject in October when putting together an handy Q & A article on how to be a non-Dom and make use of DTA's.

            http://news.bbc.co.uk/1/hi/business/8290286.stm
            I sent him a reply, nice and polite, see what he says tomorrow

            Comment


              Originally posted by javadude View Post
              My last contract was in media. They say whatever is required to get people reading.
              Of course they do.

              Todays media is about sensationalist headines and soundbites and not that much to do with real news and rigorous reporting. The world is too instant flash shocks and celeb obsessed for real news to be watched/read widely.
              Odds are Watergate wouldn't have come to light if it had happened a few years back. I was genuinely surprised when the Telegraph did such a good job on the MP's expenses farce.

              The only news source I've got any real time for these days is Reuters and I'm not sure they're what they were.

              Comment


                ...not that i'm that interested, more peeved about the sarcasm he deployed

                Comment


                  Originally posted by WhatEver View Post
                  I sent him a reply, nice and polite, see what he says tomorrow
                  I think all 2000 of us should send him an email

                  This is the article link again:

                  http://news.bbc.co.uk/1/hi/business/8484955.stm
                  Last edited by SantaClaus; 28 January 2010, 21:06.
                  'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
                  Nick Pickles, director of Big Brother Watch.

                  Comment


                    Another extract

                    In particular, the potential distortion of competition should not be overlooked. It is one thing to try to compete with, say, an IT consultant who is perhaps more experienced, efficient or skilled: it is entirely a different matter to seek to match a competitor who has the advantage of an effective income tax rate of 3.5 per cent. In my view, for various reasons, including the pressure of competitive disadvantage, such a tax avoidance scheme could be expected to have a very significant "bandwagon" effect, and, as I have stated, this is corroborated by the figures produced by HMRC.

                    The "bandwagon" effect comes about from 8 years of doing nothing to address the issue well known to HMRC during that time your Honour.

                    Where is the evidence that the scheme gave an advantage based on a tax rate of 3.5%? Oh, I forgot, no impact assessment was ever done to demonstrate this. If the Judge knows the IT contract industry, then he will also know there is a "going rate" for certain services. This argument does not wash. This is about minimising tax, not minimising your fees. Sorry your Honour, but you got this one wrong.

                    Comment


                      IVA's

                      It is interesting to note that the Government introduced IVA's to settle a small portion of your debts over 5 years so you're life would not be ruined. Funny that it doesn't seem to extend to tax debts.

                      But without any impact assessment, how would they know...?

                      Comment

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