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

[SantaClaus]

Love the last line, just so good to see:

Gittins will now consider with his legal team what options are open to him to obtain recourse

I hope what ever he does wipes the smile of McDougall's face.

[Morlock]

APNs don't include interest. The interest would only become due after the final appeal in the legal process if the decision goes in HMRC's favour.

A CTD can be used to pay an APN and the interest protection afforded by the CTD will be maintained.

I seem to recall that it's not permitted to keep charging interest on a legally-disputed sum of money if one of the parties starts recovery proceedings...?

(Of course, there is probably one rule for ordinary mortals and another for state institutions... )

[nevergiveup]

Love the last line, just so good to see:

Gittins will now consider with his legal team what options are open to him to obtain recourse

Lets hope he has something up his sleeve for us too!

[OnYourBikeGB]

I hope what ever he does wipes the smile of McDougall's face.

He might want to take onboard some of the things that he said about us. No sympathy for him, he should have considered the consequences (which at the very least I hope are career ending) and made adequate provision before he got involved in the dodgy business. What goes around, comes around.

[obitoo]

A CTD can be used to pay an APN and the interest protection afforded by the CTD will be maintained.

So, if you haven't got a CTD (like me) but have to pay an APN then it would presumably make sense to get the CTD and then pay the APN with it, rather than just coughing for the APN?

[CanPayButWouldRatherNot]

CTD vs mortgage overpayment ... end in sight ?

So, if you haven't got a CTD (like me) but have to pay an APN then it would presumably make sense to get the CTD and then pay the APN with it, rather than just coughing for the APN?

In the same boat but have been offsetting my mortgage with the money and playing the london property rally and the compound interest rate swap (vs simple penalty insurance) for the last 8 years .. think this outperformed the CTD over my time horizon.

However as soon as the APN becomes due my plan was to just pay the APN from my flexible mortgage but.....

....perhaps you are right and I would be better to get a CTD .. so that should another long running chapter kick off .. there would be some (tiny) interest due to me

[DonkeyRhubarb]

So, if you haven't got a CTD (like me) but have to pay an APN then it would presumably make sense to get the CTD and then pay the APN with it, rather than just coughing for the APN?

Not really.

A CTD only saves interest for the period of time you hold it. Unless you think it's going to be several years before you receive an APN it's not worth getting a CTD now.

[TAF4]

So, if you haven't got a CTD (like me) but have to pay an APN then it would presumably make sense to get the CTD and then pay the APN with it, rather than just coughing for the APN?

That lost me.
Assuming that you can pay an APN (dream on Hector ), which would be the principal sum only, doesn't the interest then stop accruing from that point?

[DonkeyRhubarb]

CTD example

You purchase a CTD today.

In 6 months time you get an APN and use the CTD to pay it. You save 6 month's interest - 1.5% (half of 3% p.a.).

From the point you pay the APN no further interest accrues, since this is treated like a payment on account.

[TAF4]

From AccountingWeb forum:
The chief executive and former tax consultant director at Montpelier Chartered Accountants have been cleared of cheating the public revenue through a £1m gift aid tax relief scheme.

Chief executive Watkin Gittins and Martin Calcutt were originally accused of abusing tax relief that allowed individuals making gifts to charity to offset the market value of gifts against their liabilities.

The pair, both ICAEW members, were charged in August 2013 of cheating the public revenue. In addition Calcutt faced a forgery charge over documents designed to gain HMRC clearance for their tax relief claim.

But both Gittins and Calcutt were found innocent at Liverpool Crown Court this week, when prosecutors decided to offer no further evidence.

They then asked the judge to direct the jury to acquit them and a formal verdict of not guilty was recorded.

The scheme in question was shut down by HMRC in July 2004.

Prosecutors claimed that Gittins knew the tax relief claim fraudulent. But he had had no part in the drafting or submission of the individual’s tax returns.

The jury’s verdict came after the evidence demonstrated that the taxpayers’ returns were accurate. HMRC’s initial argument had been disposed of at an earlier hearing where it accepted that the gifts were lawful.

The Crown Prosecution Service (CPS), on behalf of HMRC, said that the decision to prosecute the case was the "right one".

"When we took that decision in August 2013, we determined that there was sufficient evidence for a realistic prospect of conviction, based on the material provided to us by HMRC and the defence at the time," a spokesperson said.

In May, the trial judge had rejected an application by the defence to have the case dismissed, ruling that there was a case to answer.

However, the CPS added that two weeks into the trial, during cross-examination of prosecution witnesses, the defence produced material which had not previously been provided to them.

"In light of the resulting evidence from the witnesses, we decided to offer no further evidence. The judge made no criticism of the prosecution’s decisions in this case," the spokesperson said.

But Keystone Law solicitor Mark Spragg, who represented Gittins, insists HMRC "never had a case at all".

"What's disappointing is that the Revenue never engaged with us during the investigation process," he continued.

"We wrote, in a number of cases, and explained why there wasn't any kind of an offence here but they just ploughed on. It's disappointing that it took them two weeks to get to that stage of the trial.

Spragg the case and investigation, which had been going on since 2007, meant that Gittins' businesses and Montpelier Tax Consultants and associated accounting firm (Montpelier Chartered Accountants) suffered reputational damage.

"It was debilitatiating for everyone involved, and particuarly for Gittins and his employees. The problem we have is the high profile raids in 2010 in the Isle of Man and simultaneously in London, really damaged his business reputation beyond repair. Now he's been declared innocent, one can see how unfair the system has been against him.

"I think HMRC had been after Gittins for some time. What they seem to be doing these days is not confronting tax advisers in terms of legitimacy of tax schemes, but just trying to close them down once and for all.

"Even if they're wrong about prosecution they'll say it's a good thing his business was closed down, because more people are paying more tax. I think that's what's behind it," he added.

According to Spragg, Gittins is considering his options for obtaining recourse.

HMRC declined an opportunity to comment on the case. AccountingWEB is awaiting a comment instead from the CPS.

Be afraid Hector, very afraid.