HMRC enquiries for EBT schemes through SANZAR

[MrO666]

Unless I'm very much mistaken, based upon the link below, then HMRC would have no legal right to open a discovery assessment providing the individuals tax return clearly stated the DOTAS number, and that their P11D was submitted to HMRC which clearly stated the loans which the individual was in receipt of.

SALF409 - Enquiries into Tax Returns: discovery assessments

Surely HMRC would need to clearly prove that they had discovered something additional which had prompted the discovery assessment, and that it was 100% not based on information in which it was already in receipt of.

This to me seems fairly conclusive. HMRC's own website clearly states that an individual is entitled to finality of their tax affairs, and the window for that is 12 months from receipt of the self assessment. Discovery assessments can only be opened in the event that the officer either has new information, or that they could not be expected to realise that there may be reason to doubt the information on a return. Well.....if a DOTAS number and access to a P11D showing large loans wasn't reason enough to raise an enquiry, then what is...............

The only other avenue for HMRC is to say that an individual has been careless with their tax affairs, however providing they included the DOTAS scheme number and the P11D was submitted, then they clearly have made no attempt to 'hide' their financial position, so that won't fly.

[malvolio]

Unless I'm very much mistaken, based upon the link below, then HMRC would have no legal right to open a discovery assessment providing the individuals tax return clearly stated the DOTAS number, and that their P11D was submitted to HMRC which clearly stated the loans which the individual was in receipt of.

SALF409 - Enquiries into Tax Returns: discovery assessments

Surely HMRC would need to clearly prove that they had discovered something additional which had prompted the discovery assessment, and that it was 100% not based on information in which it was already in receipt of.

This to me seems fairly conclusive. HMRC's own website clearly states that an individual is entitled to finality of their tax affairs, and the window for that is 12 months from receipt of the self assessment. Discovery assessments can only be opened in the event that the officer either has new information, or that they could not be expected to realise that there may be reason to doubt the information on a return. Well.....if a DOTAS number and access to a P11D showing large loans wasn't reason enough to raise an enquiry, then what is...............

The only other avenue for HMRC is to say that an individual has been careless with their tax affairs, however providing they included the DOTAS scheme number and the P11D was submitted, then they clearly have made no attempt to 'hide' their financial position, so that won't fly.

You still don't get it. It's not the validity of the scheme or the supporting arrangements they are challenging - they are entirely legal - it's your right as a UK taxpayer (assuming you are, of course) to make use of it. That's what you have to be able to defend.

[MrO666]

You still don't get it. It's not the validity of the scheme or the supporting arrangements they are challenging - they are entirely legal - it's your right as a UK taxpayer (assuming you are, of course) to make use of it. That's what you have to be able to defend.

I do get it entirely thank you, what I don't however get is how HMRC can apparently ignore their own rules and regulations and open discovery assessments when they quite clearly have not discovered anything, absolutely nothing.

What's the point in having these rules if HMRC don't feel like they need to abide by them.

[convict]

For the transfer of assets abroad argument to work HMRC have to convince a Judge that an intangible asset such as a person's labour falls within S739 ICTA 1988/s714-751 ITA 2007 and that same person has a "power to enjoy", that the person does not meet any of the exemptions and a whole load of other things.

This is going to run and run....


INTM600020 - Transfer of assets abroad: Overview of ITA2007/Sections 721 and 727 (?Income Charge?)

[MrO666]

I know i'm banging on about this, but the question still remains whether HMRC were / are legally entitled to open discovery assessments in relation to these or not.......I guess that's something that will be disputed in the future.

[DonkeyRhubarb]

Guys, be careful who you listen to here (and that includes me). I seriously doubt there is anyone here qualified to give a truly informed opinion.

Endlessly speculating, and trying to second guess what HMRC will or won't do, will do your heads in. We did that to death on the BN66 thread over the years and it just made everyone even more despondent.

One point to keep at the back of your minds is that HMRC wouldn't have introduced the disguised remuneration legislation in Dec 2010 if the previous law was effective.

If there wasn't so much money at stake, and they weren't getting such a hard time from the NAO and PAC, they would probably have just written all of this off when the new law came in.

[MrO666]

Guys, be careful who you listen to here (and that includes me). I seriously doubt there is anyone here qualified to give a truly informed opinion.

Endlessly speculating, and trying to second guess what HMRC will or won't do, will do your heads in. We did that to death on the BN66 thread over the years and it just made everyone even more despondent.

One point to keep at the back of your minds is that HMRC wouldn't have introduced the disguised remuneration legislation in Dec 2010 if the previous law was effective.

If there wasn't so much money at stake, and they weren't getting such a hard time from the NAO and PAC, they would probably have just written all of this off when the new law came in.

I like your style

[lara400]

This has come up on the news posting today...HMRC stalks Sanzar loan scheme contractors :: Contractor UK

Not too sure why this has made the news now as this has been going on for the past year or more....anyway, I last heard from Cobham in July I think and they stated in their email that they are still in dicussion with HMRC and will update as and when desired....I, like many, am still waiting....

[MrO666]

So has anyone else our there been hit by Hector for 10 and 11 yet ?

[fatpug]

So has anyone else our there been hit by Hector for 10 and 11 yet ?

Yes, I received a letter a few weeks ago.
I've contacted Contractor Helpdesk who have sent me a template for making an appeal. I'm trying to decide whether to send it in myself or getting a tax accountant to do this on my behalf.