HMRC Enquiry letters on Loans from EBT and other schemes

[DonkeyRhubarb]

also any clue on this link where in HMRC was challenged --

Victory for the taxpayers in the Charlton case as the UT confirms that HMRC's discovery assessments were unlawful - RPC Tax Take

Basically, if you put a scheme reference number (SRN) on your self assessment tax return then HMRC are probably taking the piss opening enquiries or raising assessments using discovery.

HMRC will probably appeal the above decision but I reckon they're on a hiding to nothing.

[Safe]

Anyone seen this befor!!!

It has some good information on it but mainly asking to settle it!!!!! They want easy money. The answer is NO!!

http://www.hmrc.gov.uk/specialist/ebt-faqs.pdf

[LandRover]

Discretionary Trusts

I ask all of you to read up on what a discretionary Trust is...

Discretionary trusts
These are where the trustees can decide how to use the trust income, and sometimes the capital.

Depending on the trust deed, trustees can decide:

• what gets paid out (income or capital)
• which beneficiary to make payments to
• how often payments are made
• any conditions to impose on the beneficiaries

If HMRC is stating that they are liable to tax then the entire Trust Industry is affected.

Its enormous implications, as it affects so many industries and products.

Also note:

"It is the responsibility of the trustees to declare and pay any Income Tax due."

Any legal argument from HMRC is not allowed if they are trying to state that the legal entity of a Trust is invalid, however in the Murray Group v HMRC tribunal they agreed that it is legal and loans made by discretionary trust are valid. So its not legality that is being but seems to be how its administered?

[Michael J Perry FCA]

Hmrc policy

I have been asked many times to shed some light on HMRC policy in this area of Pay Schemes and have referred to the Litigation and Strategy document to understand which cases HMRC litigate and why.

On 19 February the Public Accounts Committee (PAC) published a report Tax avoidance: tackling marketed avoidance following evidence sessions at the end of 2012 with senior officials at HMRC and with three scheme promoters.

This is essential reading for all concerned to understand what we are dealing with.

You can access this on the internet or PM me if you have difficulty getting a copy.

Information is all important at this time.

[cojak]

And here is the report:Tax avoidance: tackling marketed avoidance schemes

[foreal28]

Hi. Had the HMRC letter regarding 2010-2011 tax year. used Cascade from July10-December10. My letter is not a tax demand but notice of an accessment. Kingston smith via Cascade have sent a responce to HMRC. A couple of emails should have alos been received from Hamilton.T etc..

Hi folks,

I got the 08/09 letter yesterday demanding way much more money that I could possibly repay (and these days no longer contract nor earn anything like as much as I did in those glory days). I'm also father of 2 young kids so have a bit more to lose these days than I did then..I guess there are others in a similar circumstance.

I have yet to contact Cascade as it is the weekend - however a quote from "Michael J Perry" does make sense.



If the admin's have no issue - would it be possible to update my account so I can get PM's, what I suggest is all people who are effected specifically by Cascade form a group (we can start a private google + hangout), so whilst it would be ideal if Cascade do the right thing if that fails then we can try and work together and get representation (as surely our situation must be very similar). I don't know about others but I also think it would be a good thing so we can chat about it with people who are in the same situation, I know for me its quite a heavy burden and I don't really want to talk to anyone who is going to give me the "I told you so" talk... so having some "friends" would help. Obviously don't want to do this too publicly on this forum as we know HMRC are surely going to be reading...

Big thanks to Michael J Perry and DonkeyRhubarb for being so active and helpful.

Cascade effected people - if you reply to the comment on this thread to say you want to join at least we can have a show of hands...

Good luck to all...

[Seven]

Edge

Edge consulting can be contacted on <mod snip>. They were very helpful but I felt I needed proper representation. Email me to obtain further details but I'll say that these guys are experienced, have other Edge clients and are very familiar with Edge and other schemes.

I too have been invited to the 08/09 party - same letter, same thing.

Dont suppose by any remote chance anyone has a contact number for Egde Consulting - searched everywhere and with Norla having ceased trading, no help there.

Very grateful in advance for any help, as assuming others were with Edge - for my part I am seeking to confirm whether the contract helpdesk/Cobham Murphy are representing these schemes, given they are covering some 20 + at the moment.

Many thanks

[cojak]

Edge consulting can be contacted on <mod snip>. They were very helpful but I felt I needed proper representation. Email me to obtain further details but I'll say that these guys are experienced, have other Edge clients and are very familiar with Edge and other schemes.

Who are 'these guys' Seven, another tax specialist or Cobham Murphy?

[DonkeyRhubarb]

My 2c worth

I suspect this is going to drag on for years.

HMRC are only raising assessments now, to protect their position, because of the impending 4-year cut-off. It doesn't mean that they are suddenly about to stir from their natural slumber.

The amount of work HMRC put into the EBT Settlement Opportunity should tell you a lot about what they are hoping to achieve.

Once you've lodged your appeal it might be better just to forget about this and get on with your lives.

[DesparateDan]

Re: Michael J Perry's offer

Just wanted to know if anyone is considering the offer by Michael J Perry regarding a free Info session? If so, please do include me in the list.

(also posted in SANZAR thread)

I, for one, am interseted interested in Michael's offer.
My understanding is that he is suggesting an approximately 2 hour seminar: part information part questions (preferrably questions prepared in advance)
Covering things such as who he is (obviously), history of EBT schemes and HMRC investigations,
what to expect next and some mistakes to avoid.

If anyone would be interested in attending one in London, in the next couple of weeks. (or knows how to get a good deal on a hotel meeting room in London). PM me and I will try to co-ordinate

Dan