HMRC Enquiry letters on Loans from EBT and other schemes

[convict]

the ftt decision is out. Time to get organised and appeal to UTT

[CDJ]

the ftt decision is out. Time to get organised and appeal to UTT

Which decision Convict?? can't see anything relevant on the FTT decisions site??

[convict]

Which decision Convict?? can't see anything relevant on the FTT decisions site??

I will not enter into any discussion on this at this time.

Reasons for Decision
10 120. In reaching the above conclusions and deciding this appeal we have borne in
mind Parliament’s intention which is to render liable to tax income which in
substance and reality is employment income. We find that the monies which were
ostensibly paid over to Mr Boyle as loans were in substance and reality income from
his employment, bearing in mind in particular that Mr Boyle had no need for a loan,
15 there was an entirely artificial exchange rate; the reality is that there was no
borrowing by Mr Boyle and he never believed that the 'loans' were other than a means
of receiving his income without suffering tax on that income.
121. For all of the reasons set out above we uphold HMRC’s finding that Mr Boyle
is liable to income tax for the years 2001/2002, 2002/2003 and 2003/2004 in respect
20 of monies he received as employment income in the amounts set out at paragraph 21
above. However, as stated above, if we are wrong to conclude that the monies
received by Mr Boyle were emoluments of his employment, then we find that he is
liable to tax under the transfer of assets provisions and we dismiss all the various
grounds of appeal.
25 122. This document contains full findings of fact and reasons for the decision. Any
party dissatisfied with this decision has a right to apply for permission to appeal
against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax
Chamber) Rules 2009. The application must be received by this Tribunal not later
than 56 days after this decision is sent to that party. The parties are referred to
30 “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)”
which accompanies and forms part of this decision notice.
35 JUDGE J C GORT
TRIBUNAL JUDGE
RELEASE DATE: 29 November 2013

[malvolio]

It's perhaps worth pointing out that you can only appeal on the basis of an error in applying the law: you can't change what's been said, or introduce new evidence.


That said, Arctic went all the way to the top before it was won.

[Tweedle]

I will not enter into any discussion on this at this time.

Reasons for Decision
10 120. In reaching the above conclusions and deciding this appeal we have borne in
mind Parliament’s intention which is to render liable to tax income which in
substance and reality is employment income. We find that the monies which were
ostensibly paid over to Mr Boyle as loans were in substance and reality income from
his employment, bearing in mind in particular that Mr Boyle had no need for a loan,
15 there was an entirely artificial exchange rate; the reality is that there was no
borrowing by Mr Boyle and he never believed that the 'loans' were other than a means
of receiving his income without suffering tax on that income.
121. For all of the reasons set out above we uphold HMRC’s finding that Mr Boyle
is liable to income tax for the years 2001/2002, 2002/2003 and 2003/2004 in respect
20 of monies he received as employment income in the amounts set out at paragraph 21
above. However, as stated above, if we are wrong to conclude that the monies
received by Mr Boyle were emoluments of his employment, then we find that he is
liable to tax under the transfer of assets provisions and we dismiss all the various
grounds of appeal.
25 122. This document contains full findings of fact and reasons for the decision. Any
party dissatisfied with this decision has a right to apply for permission to appeal
against it pursuant to Rule 39 of the Tribunal Procedure (First-tier Tribunal) (Tax
Chamber) Rules 2009. The application must be received by this Tribunal not later
than 56 days after this decision is sent to that party. The parties are referred to
30 “Guidance to accompany a Decision from the First-tier Tribunal (Tax Chamber)”
which accompanies and forms part of this decision notice.
35 JUDGE J C GORT
TRIBUNAL JUDGE
RELEASE DATE: 29 November 2013

Thanks for this, but any clues where you found this - it's not on the FTT decisions page...I'm sure lots of us on this forum would be interested.

[z4thras]

Thanks for this, but any clues where you found this - it's not on the FTT decisions page...I'm sure lots of us on this forum would be interested.

Can we asume this may be something to do with Frankie Boyle and the winding up of his company? or is this the wrong Boyle?

[vern19]

Can we asume this may be something to do with Frankie Boyle and the winding up of his company? or is this the wrong Boyle?

Unfortunately this is Mr. Boyle the IT contractor

[z4thras]

Unfortunately this is Mr. Boyle the IT contractor

Thanks.. can a link be posted so we can read full decision?

[AngryMan]

What does this actually mean?

We are stuffed?

[K12AN]

All EBTs were structured differently.
This case goes back to 2003...what about subsequent years?

Also, the Edge EBT did not get repaid in depreciating currencies etc...we declared our loans on our P11D forms and then paid the interest charges.

This is not a 'like for like' case - so would be wrong to jump to conclusions.