BN66 - Round 2 (Court of Appeal)

[swede]

So...As announced in budget yesterday they are shutting down the EBT and Loan tax avoidance schemes; but not with retrospective effect.

Whatthe F****K ?????? What about them paying a 'fair share' and not acting in the 'spirit of the law'.

Surely this should be used in court to back up our defense. We are being treated differently to every other tax payer and being made an example of.

I mentioned that to the missus - she also quickly cottoned on to the fact that.....

"That's not f****king FAIR!!!"

Honestly, who stands a cat in hells chance of making head or tail of these incredible, ridiculous and inconsistent rules?!?!?!

BTW "For the avoidance of doubt", I am not suggesting that people on those other schemes should be taxed retrospectively.

Bunch of arse.

[DownButNotOut]

Ebt

EBT scheme are under investigation. Norla/Edge returns have been sent to the special commissioners. As Fred correctly pointed out the new legislation could be applied retrospectively especially if this mess is made to stick.

[DonkeyRhubarb]

What's strange is that they've pre-announced it a year in advance.

Is that meant to be a warning?

The announcement clearly says "take effect from" but, as we know, you can't trust these buggers.

I doubt the intention is to give promoters time to put other arrangements in place.

http://www.hmrc.gov.uk/budget2010/enforcement.htm#6

Anti Avoidance - Earnings paid through Trusts or other entities

The Government will be taking action to prevent attempts to avoid tax and National Insurance contributions through the use of Employee Benefit Trusts and other arrangements to disguise payments of remuneration and intends to introduce anti-avoidance legislation to take effect from 6 April 2011.

[PlaneSailing]

What's strange is that they've pre-announced it a year in advance.

Is that meant to be a warning?

The announcement clearly says "take effect from" but, as we know, you can't trust these buggers.

http://www.hmrc.gov.uk/budget2010/enforcement.htm#6

Anti Avoidance - Earnings paid through Trusts or other entities

The Government will be taking action to prevent attempts to avoid tax and National Insurance contributions through the use of Employee Benefit Trusts and other arrangements to disguise payments of remuneration and intends to introduce anti-avoidance legislation to take effect from 6 April 2011.

Although the repo changes are retrospective :


Repo Transactions - Changes to legislation
Legislation - announced on 9 February 2010 - will clarify the corporation tax treatment of manufactured payments received in the course of sale and repurchase (or "repo") transactions. The proposed legislation puts beyond doubt that amounts to be brought into account for tax purposes by companies in respect of manufactured payments are those that are taken into account in accordance with generally accepted accounting practice. As originally announced, the Government proposes that this legislation will have effect from the date the repo rules were introduced-1 October 2007.



Lets see how this gets through committee stages.

[DonkeyRhubarb]

Although the repo changes are retrospective :


Repo Transactions - Changes to legislation
Legislation - announced on 9 February 2010 - will clarify the corporation tax treatment of manufactured payments received in the course of sale and repurchase (or "repo") transactions. The proposed legislation puts beyond doubt that amounts to be brought into account for tax purposes by companies in respect of manufactured payments are those that are taken into account in accordance with generally accepted accounting practice. As originally announced, the Government proposes that this legislation will have effect from the date the repo rules were introduced-1 October 2007.



Lets see how this gets through committee stages.

Don't you just love that phrase.

[Plonker]

I performed my own due dilligence on EBT's and the MTM scheme....and the MTM structure looked far more robust and won!

Anyway, the latest proposed legislation can only be an aid to our cause - it clearly highlights the inconsistent application of the law. There is no justification for retrospective taxation.

And to all of those lovely HMRC half-wits out there.....go bouce naked on a cactus

[Boycie]

EBTs

Does the latest budget mean that it is a green light for the next year for all EBT users? In which case, anyone who wants to bag a year on an EBT and isn't currently doing so should get a move on..?

[johnnyguitar]

loan schemes

whats the verdict on these ? are they under investigation anywhere ?
In conversation with one of the companies running one, they assured me that they were not being investigated and were safe.

I think I've heard that line before somewhere.

[DownButNotOut]

EBT loan scheme's

whats the verdict on these ? are they under investigation anywhere ?
In conversation with one of the companies running one, they assured me that they were not being investigated and were safe.

I think I've heard that line before somewhere.

my returns for 2007 - 2008 with Norla/Edge have been sent to the special commissioners.

Obviously Norla have said there's nothing to worry about, but then they would wouldn't they.....

If HMRC win this double taxation mess don't you think there retrospectively come after other artifical schemes?

[sal626]

my returns for 2007 - 2008 with Norla/Edge have been sent to the special commissioners.

Obviously Norla have said there's nothing to worry about, but then they would wouldn't they.....

If HMRC win this double taxation mess don't you think there retrospectively come after other artifical schemes?

As far as I am aware, two cases have gone to Special commissioners for EBT – Dextra and Sempra, and in both cases SC ruled against HMRC. In Dextra (2009) HMRC did not even appeal.
When you say your returns have been sent to special commissioner, do you mean HMRC have taken the Norla case to SC? Or just that your returns are being queried? Do you have a date for the hearing?