• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

BN66 - JR Judgement Day

Collapse
This topic is closed.
X
X
Collapse
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Letter to my MP

    Winging its way to my MP. What we need are 3000 other people to write to their MP. That includes all the lethargic F5 button pushers. If you can't be bothered, please don't complain later!

    P.S. I know you're reading this, Mr Justice Kenneth Parker. Maybe you might feel an ounce of guilt when you read it.
    ------------------------------------------------------------------------

    Dear Mr Corbyn

    You may recall I have written to you on several occasions regarding the retrospective effect of Section 58 of the 2008 Finance Bill, which seeks to close a tax avoidance loophole, but unfairly punishes myself and 3000 other people for tax planning that was perfectly legitimate at the time.
    The effect will be to claim back tax + interest for the past 7 years which in my case amounts to approximately £150,000.

    I can confirm to you that a judgement was handed down in the High Court in favour of the Inland Revenue and thus myself and 3000 other families will shortly be facing bankruptcy.

    Originally, you wrote to me with a reply from Stephen Timms who claimed HMRC were “clarifying” existing legislation and not using retrospection. This was his justification to parliament for allowing the 2008 Finance Bill to receive Queen’s assent. In fact parliament was misled by Timms and HMRC, as the majority of MPs who voted for this bill did so without knowing they were voting for a retrospective tax change. Also, many people I know have had replies from their MPs stating they did not know so many people would be so badly affected by this legislation.

    I was somewhat surprised to read in the Judicial Review judgement that Mr Justice Kenneth Parker thought that the use of retrospection was allowed in this case because he deemed it to be “proportionate”. I cannot understand how bankrupting 3000 families can be considered proportionate and justify applying a tax change retrospectively.

    Consequently I was shocked and appalled to read in the same week that the Supreme Court had decided the Government was wrong to freeze the bank accounts of five suspected terrorists (newspaper article enclosed) and they have been allowed to keep the money.

    However much you disagree with the tax avoidance scheme I used, I would have been better off being a terrorist as I would have received much fairer treatment from the courts.

    Just to stick the knife in further, I then read an article that MPs would not have to pay back their expenses retrospectively. So I guess it’s one rule for us ordinary citizens and another rule for our leaders.

    The case will now be appealed and eventually find it’s way to the Supreme Court and finally Strasbourg. Price Waterhouse Coopers also have a Judicial Review pending and KPMG will be going straight to the European Court of Human Rights. However, HMRC have shown they can be ruthless in the past and I await a call from bailiffs and letters of demand even though the case is being appealed.

    The use of retrospective taxation is extremely uncompetitive for the UK, as businesses and individuals no longer face certainty of their tax position as they once did.

    The govt. can no longer hide behind the lie that they are “clarifying” an existing law. What they have done is retrospectively change a law and that creates a precedent and gives them license to use retrospection on a whim and whenever they please. No business in their right mind will operate out of the UK with this level of uncertainty. As you no doubt know, many businesses are already leaving for friendlier tax regimes.

    As the “little man” in this cat and mouse game between the government and tax advisors, I feel I have been extremely unfairly treated.

    I would hope that you would raise this matter in Parliament. The 2008 Finance Bill should never have been allowed to be voted through and probably wouldn’t if it had been known that it’s intent was retrospective legislation rather than a “clarification”. If there is such a mechanism to do so, the bill should be put to a re-vote.

    I really despair of what is happening in this country to our freedoms and civil liberties. They are being taken away one by one.

    My family, including my 1 year old daughter now face certain bankruptcy and losing our home. No doubt, we will be able to join the benefits queue, and so the effect to the govt. may be an even greater loss than the tax they unfairly wish to gain from me.


    Yours sincerely

    SantaClaus
    Last edited by SantaClaus; 31 January 2010, 00:05.
    'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
    Nick Pickles, director of Big Brother Watch.

    Comment


      Originally posted by SantaClaus View Post
      Winging its way to my MP. What we need are 3000 other people to write to their MP. ....
      ....

      Yours sincerely

      SantaClaus
      good move
      The more MPs raise the question the better. It will also help with "impact assessment" in time for the appeal. My letter is going out on Monday,

      Comment


        Originally posted by lucozade View Post
        Certainly interesting in why HMRC are willing to offer doctors and dentists a deal of 10% on what they DIDN'T declare whilst they want 100% of what we DID declare. How is that ever to be viewed as justice !!!!!
        No, they want a 10% penalty as well as the tax owed (possibly plus interest). For you, they just want the tax owed (plus interest)

        The two things aren't comparable.

        Comment


          Parliament was misled

          Originally posted by centurian View Post
          No, they want a 10% penalty as well as the tax owed (possibly plus interest). For you, they just want the tax owed (plus interest)

          The two things aren't comparable.
          No Centurian, they are not comparable. Because what we did was legal and declared, whereas the doctors scheme is and always was illegal and hidden.

          Did you notice, in the judgement, that the judge considered the argument used to justify s.58 to Parliament?

          Parapraphs 67-71 considers whether we were a "member of a firm" and while the judge does not give an explicit opinion he appears to support that we were not. The significance of this is that firstly the scheme DID successfully avoid tax (ie it confirms what HMRC said in Technical Exchange 63), and perhaps more importantly, that the explaination given to Parliament was misleading (see paragraph 71).

          Perhaps parts of the judgement should be quoted to our MP's. They were misled into voting through a retrospective tax. Afterall, we now know that the MP's do no like retrospective changes to expenses rules.
          Last edited by Toocan; 31 January 2010, 09:54.
          There's an elephant wondering around here...

          Comment


            P.S. I know you're reading this, Mr Justice Kenneth Parker. Maybe you might feel an ounce of guilt when you read it.
            You need to understand who your enemies are. He did you a favour, by opening the route to a proper appeal process.
            Blog? What blog...?

            Comment


              Originally posted by DonkeyRhubarb View Post
              The appeals process will shortly be put in motion, and we've got PwC's case coming up in March. I, along with others, will continue in the background to dig up evidence to support our case.

              However...

              Our primary concern now has got to be vigilence for any stunts HMRC may try to pull. For once, I don't expect them to sit on their big fat arses. They have already demonstrated that they don't follow due process, so I am expecting some bully boy tactics to try and force people to roll over.

              Let's all stand together and be ready to fight them on the beaches.

              Donkey, I'll be there, right by your side on that beach to the bitter bitter end...
              The Cat

              Comment


                Originally posted by malvolio View Post
                You need to understand who your enemies are. He did you a favour, by opening the route to a proper appeal process.
                Nowhere in his judgement did he mention that we should pursue this.
                'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
                Nick Pickles, director of Big Brother Watch.

                Comment


                  Originally posted by bombaycat View Post
                  Donkey, I'll be there, right by your side on that beach to the bitter bitter end...
                  I have a baseball bat by the front door and a bucket of cold water ready at the front bedroom window

                  Seriously, I think we need some guidance on here in dealing with bailiffs and threatening letters, because I too believe HMRC will try to exceed their powers.

                  For instance, never open a door to a bailiff, they can barge past you and then they have legally entered your property and can lay claim to your possesions.
                  Also ensure all your windows and doors are locked. They can legally enter through an open window or back door.

                  I am sure there are people who know a lot more about this than me though.
                  'Orwell's 1984 was supposed to be a warning, not an instruction manual'. -
                  Nick Pickles, director of Big Brother Watch.

                  Comment


                    Steed

                    Has anyone heard what's happening with their ECHR application?

                    It must be over a year now since they applied.

                    Comment


                      I am new to this site, but having always paid my taxes in full and read a large number of the postings there several things puzzling me.

                      Those involved with the avoidance scheme knew what they getting into. i.e. tax avoidance. It didn't just happen by accident. Participators took a positive step to join the scheme. So having taken that step, what safeguards were sought from the scheme promotors that the scheme as promoted actually worked?

                      Some very large sums of money were not going to be paid over to HMRC, so surely MTM/Montepllier provided some guarantees? Afterall, who risks (say) £50,000 without at least warranties in place? If MTM/Montpellier did not provide guarantees surely common sense wouild tell you to make provisions for the money until it was absolutely certain you didn't have to pay the tax?

                      Even if you didn't make a provision for the tax from the outset, once you knew HMRC were looking for the tax, surely you start to make provision at that stage?

                      HMRC has made it clear in many publications about its views on tax avoidance.Indeed sometime ago the then Paymaster General said, (to paraphrase her), if you play with fire sometimes you get your fingers burned.

                      Presumably during the period tax has been avoided by users of the scheme, the same users have been been quite happy to use the NHS, schools and police etc. Services paid for by.... err.... taxes

                      Comment

                      Working...
                      X