HMRC enquiries for EBT schemes through SANZAR

[samuel]

Notice of assessment to Income Tax

I received in January a Notice of assessment to Income Tax for the year 2008/2009 which contractor Helpdesk (CH) sent on to Cobham Murphy who sent an appeal letter on my behalf.

Recently I received the notice for the year 2009/2010. I emailed CH and they replied stating that "A number of promoters who sold tax avoidance schemes back then are no longer in the market place, therefore CH can help you to better understand your potential options regarding how to respond". They are therefore no longer dealing with Sanzar clients for the year 2009/2010.

I am unsure to what extent Cobham Murphy (CM) will defend us and whether we will have to pay for the defense. Moreover, we have been left to ourselves to deal with subsequent years.

Does anyone know to what extent CM will defend us or have any idea whether they were provided funds to do this?

What do we do for subsequent years i.e. 09/10, 10/11?

Should we not collectively organise tax legal counsel ourselves proactively?

[MrO666]

HMRC were notified of the amounts of the loans via the P11ds and the fact that the loans were discharged, so they have a good idea of the amounts involved.

From memory, according to Sanzars the scheme worked because of the double taxation agreement between the IOM and the UK, which thier tax barister said made the discharge not taxable.

Sorry to disagree here, but I don't think HMRC are basing any assessments for 09-10 or 10-11 upon P11D's because every peson who I know that that has received these letters, in every single occassion the assessment has been very wrong, which means they are definately not based upon ANY factual information which HMRC currently have.

Regarding the double taxation treaty, that loophole was closed many years ago and to the best of my knowledge (and others in the industry), no Sanzar scheme was ever based upon double taxation (well not from 08-09 onwards anyway).

[MrO666]

I received in January a Notice of assessment to Income Tax for the year 2008/2009 which contractor Helpdesk (CH) sent on to Cobham Murphy who sent an appeal letter on my behalf.

Recently I received the notice for the year 2009/2010. I emailed CH and they replied stating that "A number of promoters who sold tax avoidance schemes back then are no longer in the market place, therefore CH can help you to better understand your potential options regarding how to respond". They are therefore no longer dealing with Sanzar clients for the year 2009/2010.

I am unsure to what extent Cobham Murphy (CM) will defend us and whether we will have to pay for the defense. Moreover, we have been left to ourselves to deal with subsequent years.

Does anyone know to what extent CM will defend us or have any idea whether they were provided funds to do this?

What do we do for subsequent years i.e. 09/10, 10/11?

Should we not collectively organise tax legal counsel ourselves proactively?

Indeed, Cobham are not getting involved in this at all unless you get them to represent you directly I believe.

It all depends on your viewpoint and how deep in the hole you would potentially be I guess. Some would say just appeal it and start saving, as this will no doubt be dragging on for years so you would hopefully be able set aside enough to cover any liability if it does come to it. Others would say fight it all the way.

For me the fighting it option only makes financial sense if the sums involved are large, after all why would you bother spending 5 grand to fight a tax demand of 15. If you loose it's cost you 20, whereas 5 to fight a demand of 50, then that makes sense.

Just get your appeal in and forget about it until HMRC contact you again.

[samuel]

Thanks - I will definitely get my appeal in using the template found on these forums.

Indeed, Cobham are not getting involved in this at all unless you get them to represent you directly I believe.

It all depends on your viewpoint and how deep in the hole you would potentially be I guess. Some would say just appeal it and start saving, as this will no doubt be dragging on for years so you would hopefully be able set aside enough to cover any liability if it does come to it. Others would say fight it all the way.

For me the fighting it option only makes financial sense if the sums involved are large, after all why would you bother spending 5 grand to fight a tax demand of 15. If you loose it's cost you 20, whereas 5 to fight a demand of 50, then that makes sense.

Just get your appeal in and forget about it until HMRC contact you again.

[Smithton]

HMRC assessments relating to Sanzr - 2010 and 2011

OK so I have just received a letter from HMRC asking for a LOT of money for year ending 5th april 2010 and 5th april 2011.

Have been in touch with Cobham and they have explained that they don t deal with Sanzar clients anymore. Has any one had this? And who do I turn to! Help!

Hi guys,

I have just recently received a letter that appears similar. It was dated 9th of September (I only just got it though as I live overseas), and has enclosed notices of assessments for 5th April 2010 and 2011, using the discovery provision. I immediately contacted Contractor Helpdesk, and they sent me a template to fill out an appeal, and asked me to notify them if I decide to do so.

Having read a number of the forums and threads on this, I see people are suggesting professional advice and tax specialists to assist with the matter. Can I ask, has anyone engaged Cobham Murphy to deal with the matter for them (as a paying client), or have any recommendations for any other tax advisors who are up to speed with the issue?

I see my other alternative is to appeal myself, but not sure then where that leaves me if/when HMRC come back on the appeal.

Appreciate any advice!

Administrator - may I have PM access?

[MrO666]

Hi guys,

I have just recently received a letter that appears similar. It was dated 9th of September (I only just got it though as I live overseas), and has enclosed notices of assessments for 5th April 2010 and 2011, using the discovery provision. I immediately contacted Contractor Helpdesk, and they sent me a template to fill out an appeal, and asked me to notify them if I decide to do so.

Having read a number of the forums and threads on this, I see people are suggesting professional advice and tax specialists to assist with the matter. Can I ask, has anyone engaged Cobham Murphy to deal with the matter for them (as a paying client), or have any recommendations for any other tax advisors who are up to speed with the issue?

I see my other alternative is to appeal myself, but not sure then where that leaves me if/when HMRC come back on the appeal.

Appreciate any advice!

Administrator - may I have PM access?

It all depends on how comfortable you are with appealing yourself (it's not hard, just use the template).

Cobham will certainly do it for you, but I know they require £1000 on account upfront, and their charges run at between £120 and £200 per hour (+VAT). Based on that , unless your assessment is huge then you may want to consider just appealing and going from there. Remember that any tax specialist will still take your case on at a later stage if need be (ie HMRC start asking questions).

From what I'm aware of, HMRC are accepting all appeals so you should just get a confirmation of this and then wait to see what (if anything) ever happens.

[sanzar took me down]

Sanzar's letter

Hello all,
I was wondering if anyone was able to find a concrete solution to this issue?
Has anybody raised an appeal with the HMRC?
I have a letter from Sanzar clearly stating the amounts they have to me by loan.
Wondering if anyone can advice me further

[cojak]

Hello all,
I was wondering if anyone was able to find a concrete solution to this issue?
Has anybody raised an appeal with the HMRC?
I have a letter from Sanzar clearly stating the amounts they have to me by loan.
Wondering if anyone can advice me further

I've merged the 2 Sanzar threads as few people looked at or posted on the smaller one.

[sanzar took me down]

Please inbox the template

I have already posted a suggested appeal letter on the EBT forum for use in connection with the 2008/09 income tax assessment.

Could you kindly PM me the template as I am having trouble in locating it?

[aoe26]

Could you kindly PM me the template as I am having trouble in locating it?

I have the same request.. please can I have the template (in a PM) and the contact details for contractor Helpdesk (CH). I have a scary assessment for 2009-2010 and 2010-2011.