No To Retro Tax – Campaign Against Section 58 Finance Act 2008

[eek]

It looks like it's a document for providing examples of schemes which are technically legal, but which may or may not fall within the scope of the GAAR.

If that's right, then HMRC's kind of shooting itself in the foot by even referencing Huitson.

unless the plan is to use it as the basis of retrospectively announcing that scheme X actually fell under GAAR so pay up.

But not even HMRC would be that cynical.

[WelshRarebit]

Npower

Excerpt from an email I received:


Is Npower the new Starbucks? At the same time as hiking our energy bills, Npower are using accounting tricks to dodge paying their fair share of tax in the UK. Yesterday it was revealed that they haven't paid a single penny in corporation tax for the last three years.

[TalkingCheese]

Hello Guys,

I've tried to read as many of the threads of possible around your situation as I may be at the start of a similar journey. Can you just clarify if your group have paid HMRC or are awaiting MP's to repleal the retrospective legislation? How long has this been going on for?

Hi, collection is currently suspended. The retro law was passed in 2008 going back 21 years so this unexpected nightmare has been going on for 5 years.

[swede]

unless the plan is to use it as the basis of retrospectively announcing that scheme X actually fell under GAAR so pay up.

But not even HMRC would be that cynical.

The sheer number of people that would be hit by making the GAAR retrospective would be enormous - if our cause needed any extra publicity, this would certainly help get it!

[smalldog]

finance bill

been following the latest finance bill amendments and wondered if a change is being tabled to remove the retro element, and if so do we know when? Does that rely on the cross party letter?

[andytp]

Hi, collection is currently suspended. The retro law was passed in 2008 going back 21 years so this unexpected nightmare has been going on for 5 years.

Sorry to butt in on here but I have now been invited to the party having not had any contact from HMRC about this issue ever.
When you say "collection is currently suspended", how so ? Just yesterday I received a demand for tax due from 2006-07 and 2007-08 stating that I pay it by the 5th May !

Any info greatly appreciated.

[DonkeyRhubarb]

Thanks TC. Out of interest what penalties did they impose on you? The penalties are what really scare me as they seem to be very high with no justification.

If you prefer to pm me then please do. if youy dont want to reply I would understand.

We are being charged interest, which is bad enough.

But there are no penalties because we didn't break the law. Well actually we did kind of in hindsight retrospectively. The scheme never worked or, if it did, it didn't.

Hopefully that clarifies any doubt.

[Disgusted of Coventry]

unless the plan is to use it as the basis of retrospectively announcing that scheme X actually fell under GAAR so pay up.

But not even HMRC would be that cynical.

You mean they could issue a future press release like this?

"Legislation will be introduced in Finance Bill ???? to change, retrospectively, legislation introduced in ????, ........ in line with s58 of FA2008, which itself was a retrospective change, so that it has effect as intended."

If s58 prevails, what's to stop them?

[TalkingCheese]

Sorry to butt in on here but I have now been invited to the party having not had any contact from HMRC about this issue ever.
When you say "collection is currently suspended", how so ? Just yesterday I received a demand for tax due from 2006-07 and 2007-08 stating that I pay it by the 5th May !

Any info greatly appreciated.

Hi andytp. Welcome to the party ! Were you Montpelier ? If so, have you had enquiries opened in the appropriate time frame or is this the first you have heard ?

Suspension is due to the legal process that has been continuing.

[DonkeyRhubarb]

Sorry to butt in on here but I have now been invited to the party having not had any contact from HMRC about this issue ever.
When you say "collection is currently suspended", how so ? Just yesterday I received a demand for tax due from 2006-07 and 2007-08 stating that I pay it by the 5th May !

Any info greatly appreciated.

You need to contact your scheme provider (Montpelier, Steed, deGraaf or whoever) and ask them to appeal the notices and request postponement of payment.

If you've never had anything from HMRC before then I don't see how they have followed the rules. Your provider should be able to advise on the validity of their demands.