BN66 - Round 2 (Court of Appeal)

[Leyther70]

I'm sure its all sunshine down under... but its worth noting that the Aussie gov/ATO has in the past also used "ex post facto" changes regarding tax laws. See my previous post(s) if in doubt.

They also have the equivalent of IR35, its called the PSI test.

And cost of living is astronomical compared to UK with the current relative strengths of the two currencies!

Using the internation standard for comparison i.e. a pint

Currently in any major Auz city centre you will pay approx $11, given the exchange rate is currently ~1.6 then thats a cool 6.875GBP!

Dont get me wrong its a fantasic place to live but cheap defintely not and wages probably dont compare too well either, still I'd rather be here then blighty!

[theywontbreakme]

And another HMRC story

HMRC tax raid hits elderly and weak | Mail Online

HMRC = not fit for purpose.

They're a shambles.

[smalldog]

sounds very similar to us!!!

Last week, HMRC said it would pursue another 450,000 cases from the 2007/08 tax year. But Ms Clark says: 'They must have had all the information available to be able to issue demands now, but they failed to act on the information and allowed more than two years to elapse. In that case, taxpayers can claim exceptional circumstances

Taxpayers who made all the relevant information available to HMRC can appeal against demands under a clause known as Extra Statutory Concession A19. This clause, buried on page 15,914 of the tax book, was highlighted by Money Mail in September last year.
It states that where taxpayers believed their tax code was correct and HMRC had all the relevant information but failed to act on it, the tax demands should be written off.

Read more: http://www.dailymail.co.uk/news/arti...#ixzz1BTNXal00
Read more: HMRC tax raid hits elderly and weak | Mail Online

i'd be happy with 2 years, they should think themselves lucky!!! Concession A19 sounds interesting, I assume this could be our next steps should the COA go against us

[kbob]

I know I've banged on about this a bit...

But seriously, if you don't like the tax regime here move!

Australia is in dire need of skilled people.

I believe the ATO policy states that they are obliged to have a starting position that your submissions are correct and the burden of proving them incorrect lies with the ATO.

The ATO is far from warm and fuzzy - Look at what they recently put Hoges through, and he a great Australian.

As a British Australian I've fled to a some what more alpine local. Too hot in Australia anyway either drought or flood - That and they took our rights to firearms away long ago. You think UK is a nanny state look at Australia pretty much all fireworks are banned and it's made nearly impossible to arm yourself. Illegal to ride a bike without a helmet etc... The worst traits of UK and US.

Much as Australians love the idea of being the Ned Kelly, Chopper type outlaw hardman they have become pussies. Soon to be a client state of China and India.

[Buzby]

Extra Statutory Concession A19

sounds very similar to us!!!

Last week, HMRC said it would pursue another 450,000 cases from the 2007/08 tax year. But Ms Clark says: 'They must have had all the information available to be able to issue demands now, but they failed to act on the information and allowed more than two years to elapse. In that case, taxpayers can claim exceptional circumstances

Taxpayers who made all the relevant information available to HMRC can appeal against demands under a clause known as Extra Statutory Concession A19. This clause, buried on page 15,914 of the tax book, was highlighted by Money Mail in September last year.
It states that where taxpayers believed their tax code was correct and HMRC had all the relevant information but failed to act on it, the tax demands should be written off.

Read more: HMRC tax raid hits elderly and weak | Mail Online
Read more: HMRC tax raid hits elderly and weak | Mail Online

i'd be happy with 2 years, they should think themselves lucky!!! Concession A19 sounds interesting, I assume this could be our next steps should the COA go against us

Did a quick search on A19:

5. Reasonable belief that your tax
affairs were in order
a. Lastly comes the most difficult
condition namely
i. HMRC will consider the facts and
circumstances of any claim that this
concession should apply and
ii. decide whether it was reasonable for
you to believe (prior to receiving the Tax
Calculation) that your tax affairs were in
order.
b. This therefore shows that an officer
who may have been involved in not making
use of information has to sit down and
admit that they got it wrong.

It therefore requires judgment and an
individual revenue officer will inevitably
have a differing view of what is needed to
show something and also may well not
believe that it was reasonable even though
everybody else does.

As HMRC’s internal guidance instructions
to their staff says:-
“ The important point to remember is
• Not whether the taxpayer
‘believed’ their tax affairs were in
order
But
• Whether it was reasonable for
them to ‘hold the belief’ that they were


It is not the first time that I have seen
HMRC officers interpreting reasonableness
in a different way to other beings and the
instruction requires HMRC staff to make
a judgment twice.

Not only whether the taxpayer truly or
reasonably believed their affairs were in
order BUT also whether it was reasonable
for them to hold that belief. Wow what
scope for taking a hard and questioning
view!!. Look out for the looking at matters
from a completely different perspective.
Now TWO chances to get it wrong again.

I see the main problem that the person deciding would be a HMRC officer, but can anyone see any reason why I shouldn't give it a try?

[thincat]

Investigation into 2008/2009 tax return

Just received a letter from HMRC letting me know this tax return was under investigation. Showed short term interest free loan... Don't know why I thought this would be accepted by HMRC.
Anyone else had one of these letters ?

[prozak]

They also have the equivalent of IR35, its called the PSI test.

And cost of living is astronomical compared to UK with the current relative strengths of the two currencies!

Using the internation standard for comparison i.e. a pint

Currently in any major Auz city centre you will pay approx $11, given the exchange rate is currently ~1.6 then thats a cool 6.875GBP!

Dont get me wrong its a fantasic place to live but cheap defintely not and wages probably dont compare too well either, still I'd rather be here then blighty!

that is why I am here....

When i first moved here i could save more than i earnt in australia....

That has changed a bit now with GBP being so weak....

I haven't been back for a while bit $11 for a pint seems a bit rich!... Where the hell were you drinking? The Ritz?

[prozak]

Just received a letter from HMRC letting me know this tax return was under investigation. Showed short term interest free loan... Don't know why I thought this would be accepted by HMRC.
Anyone else had one of these letters ?

Until recently (not sure of dates) directors loans were not legal. Think there was some willingness to look past things under 5k as long as they were short term.

The problem is your loan appears to have crossed a financial year. HMRC will want to charge you tax for this.....

How much was the loan?

[Buzby]

Loan letter

Just received a letter from HMRC letting me know this tax return was under investigation. Showed short term interest free loan... Don't know why I thought this would be accepted by HMRC.
Anyone else had one of these letters ?

yes I got one at the weekend, asking Montp for more information. I also thought loans were ok up to 9th December 2010 when they changed the law (prospectively).

[moira under the stairs]

Did a quick search on A19:



I see the main problem that the person deciding would be a HMRC officer, but can anyone see any reason why I shouldn't give it a try?

We as individuals believe without doubt that out Tax forms and Tax Affairs were in order as they were submitted by 'Tax professionals' on our behalf.