The 'who's' getting shafted over tax avoidance thread?

[doodab]

It's pretty far away but still does not look good for public person who is a Sir now in current climant of dodgy tax avoidance among celebrities.

The only way it doesn't look good is if you get pissed and squint very hard through a prism of malice. Not to mention that Sir Chris Hoy is Scottish and as such should be expected to be tighter than a ducks bumhole.

[AtW]

The only way it doesn't look good is if you get pissed and squint very hard through a prism of malice. Not to mention that Sir Chris Hoy is Scottish and as such should be expected to be tighter than a ducks bumhole.

Why did not he get massive unsecure loan from bank instead?

Oh yes - because bank would charge much higher level of interest perhaps?

[Kanye]

Why did not he get massive unsecure loan from bank instead?

Oh yes - because bank would charge much higher level of interest perhaps?

Why would you borrow it from a bank when you can borrow it from 'yourself'?

I choose to pay 4% back into the company instead of the 3% I could probably get a mortgage for. It's just much easier.

Does anyone else have an opinion on whether taking a huge directors loan (correctly accounted for and managed) is in any way a grey area?

[Mich the Tester]

Why did not he get massive unsecure loan from bank instead?

Oh yes - because bank would charge much higher level of interest perhaps?

If he owns a business that has enough money to loan him at a lower rate, why shouldn't he? Of course, if that business goes belly up as a result, then he as a director can be dragged in front of court and cleaned out, but it's his own responsibility as director to take the decision and ensure it's accounted for properly.

[AtW]

If he owns a business that has enough money to loan him at a lower rate, why shouldn't he?

It's not a problem if the business is about loaning money and has got it in articles of association that massive loans to directors at low interest rates without security are ok

[Mich the Tester]

It's not a problem if the business is about loaning money and has got it in articles of association that massive loans to directors at low interest rates without security are ok

"I saw an opportunity to buy property and with the guidance of my advisers I borrowed money from my company to do so. The loan was subsequently repaid shortly thereafter by declaration of fully taxable dividends."

This doesn't give me the impression that the loan was 'unsecured'. He took it out to buy property, which would most obviously be the security for the loan.

[ASB]

Does anyone else have an opinion on whether taking a huge directors loan (correctly accounted for and managed) is in any way a grey area?

Arguably it could be in breach of the companies act. Also there is the question of the 20% tax to be paid if not settled within 9 months of the year end.

Sure, some people might find it a bit "odd". If, in effect, the company is getting a rate of return of 4% or whatever rather than whatever it would otherwise get then it is sensible business.

It is, however, widely perceived to be a bit "odd".

[AtW]

This doesn't give me the impression that the loan was 'unsecured'. He took it out to buy property, which would most obviously be the security for the loan.

It would only be secured if the business got a charge on it (just like banks do when giving mortgages) - do you think he had it? According to news articles loan was not secured:

"This amount was unsecured and interest free with no fixed repayment terms."

Chris Hoy received loan from his own firm | Sport | The Guardian

How much would an unsecured loan cost without fixed repayment terms - perhaps 10-15%?

[Mich the Tester]

It would only be secured if the business got a charge on it (just like banks do when giving mortgages) - do you think he had it? According to news articles loan was not secured:

"This amount was unsecured and interest free with no fixed repayment terms."

Chris Hoy received loan from his own firm | Sport | The Guardian

How much would an unsecured loan cost without fixed repayment terms - perhaps 10-15%?

Yes, and the Grauniad found out by looking at his company's accounts, which were obviously published as they should be. It's not as if he's hiding something.

[AtW]

Yes, and the Grauniad found out by looking at his company's accounts, which were obviously published as they should be. It's not as if he's hiding something.

His company is apparently now getting lots of applications for interest free no fixed term and no security needed loans