Loans from EBTs and other Trusts

[SantaClaus]

Government consultation re. legislation to be included in this year's budget.

https://www.gov.uk/government/upload..._avoidance.pdf

"Proposals to require individuals and companies to pay the tax in dispute
during an enquiry or appeal relating to tax avoidance."

This is a bomb waiting to go off!

In plain English, the government are looking to pass a new bill which will mean you have to pay your tax in advance of disputing it.

This means you could be bankrupted before you even have your day in court.

[Michael J Perry FCA]

HMRC Consultative paper on Tax Avoidance Schemes

It would appear that the Boyle decision is now final as no application to appeal has been lodged within the prescribed period.

Do contact us if you would like free advice about how this might impact on your own case.

This is probably required reading if you have an open tax enquiry under Section 9A TMA 1970:

https://www.gov.uk/government/upload..._avoidance.pdf

[TheDandy]

The document refers to 65,000 open cases. Given that DOTAS has been around 10 years, the proposals will affect a large proportion of these 65,000.

Many of these cases will be ones where HMRC knows full well that they have little prospect of winning in court.

This is draconian in the extreme, and we in NTRT will be redirecting some of our lobbying effort at it.

And let's not forget to mention the Government sometimes and not just HMRC. Whilst we generally accept they are one and the same thing in these matters it's worth giving special mention to our Machiavellian political class , led in this regard by Mr Gauke who it would seem is incapable of segregating his moral position from his 'legal' one but is more that happy to educate everyone else how they should conduct their affairs.

It's good to know it's morally wrong to pay the tradesman cash but stamp duty claims on much needed second homes is OK!

[AtW]

This is disgusting, bullying behaviour.

It's an overdue response to delaying tactics used by tax avoiders. They can still go through the courts if they wish, but just don't expect to hold onto the money whilst doing it.

[TheDandy]

It's an overdue response to delaying tactics used by tax avoiders. They can still go through the courts if they wish, but just don't expect to hold onto the money whilst doing it.

Delaying tactics you say........

[AtW]

Delaying tactics you say........

That's how the document puts it -

"The taxpayers and scheme promoters are incentivised to sit back and delay as long as possible – despite evidence that in the vast majority of cases, when the dispute is resolved, tax is due"

[TheDandy]

That's how the document puts it -

"The taxpayers and scheme promoters are incentivised to sit back and delay as long as possible – despite evidence that in the vast majority of cases, when the dispute is resolved, tax is due"

I'm not sure that taxpayers (no twisted pun was intended in the document) are incentivised to sit back. I am sure the Scheme Promoters are the only ones exacting a 'cashflow' advantage before winding up and taking to sunnier destinations. HMRC are the ones that have the monopoly on sitting back and doing nothing for years even with all the information they were given under DOTaS legislation.

[AtW]

I'm not sure that taxpayers (no twisted pun was intended in the document) are incentivised to sit back

Given that those tax avoiders would most likely spend the money they'll have big incentive to delay bankrupcy for as long as possible. A large enough group of people puts up a grand each to delay the inevitable for many years - making all sort of crazy claims like that it's their human right to pay a lot less tax than most people in same situation do in this country.

In practice that means that HMRC would spend lots of time and money fighting pretty much same "schemes" and often end up with people who can't pay anyway.

What HMRC wants is to stop people using such crazy schemes altogether - making tax avoiders put up the money at start of the process ensures that the interest in schemes would go away.

When they created DOTAS it should have been obvious that they can easily run sums and target large groups of tax avoiders.

HMRC are the ones that have the monopoly on sitting back and doing nothing for years even with all the information they were given under DOTaS legislation.

It's the right that they have.

[cojak]

I have moved this debate from the HMRC Enquiries Forum to here, for it to continue should the protagonists want.

No further debate on the moral rights or wrongs of the situation will be permitted there. That is an area for punters to figure out what to do next.

[SantaClaus]

I have moved this debate from the HMRC Enquiries Forum to here,
for it to continue should the protagonists want.

No further debate on the moral rights or wrongs of the situation will be permitted there. That is an area for punters to figure out what to do next.

The debate should really be moved to General along with all the other silly rubbish IMHO. Legal and General is for serious stuff and actually helping people who are in this situation.