HMRC enquiries for EBT schemes through SANZAR

[cojak]

You can find out how to get PM access (and lots of other stuff) here: http://forums.contractoruk.com/hmrc-...ml#post1698051

Appeals template in here...

[badchi]

Anyone seen this ? Re EBT Aberdeen
http://www.accountancylive.com/crone...scheme-blocked

[porrker]

Anyone seen this ? Re EBT Aberdeen
Aberdeen Asset Management EBT avoidance scheme blocked | Accountancy Live

Yeap this was all to do with the transfer of shares in the trust which HMRC argued and won should be taxed. As the article stated legislation in 2003 blocked use of such scheme post 2003 and therefore has little to do with schemes setup for contractors currently receiving discovery letters.

[z4thras]

Appeal Responce

Just as an observation, although i have received the postponement letter stating HMRC don't agree with said appeal, one being I did cite their loss at UTT (HMRC v Charlton) but they haven't asked for anything further. in March 2014 my appeal for 08/09 will have been open 12 Months without asking for any information, Can they just keep this open indefinably or can they be forced to close it via a Tribunal?

[varunksingh]

Just as an observation, although i have received the postponement letter stating HMRC don't agree with said appeal, one being I did cite their loss at UTT (HMRC v Charlton) but they haven't asked for anything further. in March 2014 my appeal for 08/09 will have been open 12 Months without asking for any information, Can they just keep this open indefinably or can they be forced to close it via a Tribunal?

As far as I know they can keep it open for a very very long time - almost indefinitely!

[MrO666]

As far as I know they can keep it open for a very very long time - almost indefinitely!

Yes, they can in theory keep it open for as long as they want.

That said though, if it was kept open for an inordinate amount of time without any contact from HMRC, you could apply to the tribunal in writing to have the appeal closed, at that point I believe that HMRC would either need to seriously start to investigate your case, or they would have to relent and allow it to be closed.

I'm pretty sure that the tribunal wouldn't allow HMRC to keep a case open indefinitely purely because HMRC felt like it and had done nothing further.

Equally, if HMRC took years to even bother looking at your appeal, I would have thought that you would then have reasonable grounds to contest any interest charges. Not saying you would win that argument, but i think the tribunal would have to look at it and assess whether the interest applied is reasonable based on the fact that it's only there because HMRC took far far to long to do anything (which seems the norm for the inept HMRC).

[z4thras]

Sanzar EBT

in the way that Sanzar operated its EBT scheme would it be fair to say that this setup would be similar in execution as other EBT vendors, say edge or tallent? and as HMRC may go on a per scheme basis might it be better to group together on a per scheme?

regards

[Old Kent Road]

Sanzar Group

in the way that Sanzar operated its EBT scheme would it be fair to say that this setup would be similar in execution as other EBT vendors, say edge or tallent? and as HMRC may go on a per scheme basis might it be better to group together on a per scheme?

regards

There would likely be similarities between ebt schemes but each is unique in its implementation and also if it was correctly implemented. So grouping per scheme is a must.

As per other posts, I think it works that hmrc picks on an individual as a test case but the group pays for his/her legal fees, as the group will naturally be bound to the outcome. But what about the scheme users that don't contribute to the group.... are their appeals also upheld by hmrc if the group case wins as the whole scheme is proven to be valid and legal ?

[z4thras]

There would likely be similarities between ebt schemes but each is unique in its implementation and also if it was correctly implemented. So grouping per scheme is a must.

As per other posts, I think it works that hmrc picks on an individual as a test case but the group pays for his/her legal fees, as the group will naturally be bound to the outcome. But what about the scheme users that don't contribute to the group.... are their appeals also upheld by hmrc if the group case wins as the whole scheme is proven to be valid and legal ?

and thus is the issue, how was Sanzars scheme implemented?

[Old Kent Road]

and thus is the issue, how was Sanzars scheme implemented?

Indeed. I couldn't say. But expert tax advice hopefully would. This might be via Cobham Murphy or other advisers. And probably big fees needing group funding. Then the group would get the guidance and would know whether to fold and settle with hmrc if the scheme was poor.... or if it has a good chance then persist with appeals and support the test case at tribunal etc...