HMRC enquiries for EBT schemes through SANZAR

[Shrek77]

There is an analysis of Boyle here:
boyle v hmrc | Ensign Taxation

I think there is real risk that, if HMRC get the proposed new "follower case" legislation, they will use Boyle to hit other schemes with payment notices.

I have read the Boyle case and feel this is definitely what they will use.
The fact it has been referred to in the letter shows their intentions.
I was wondering if anyone else has received the same letter?

[varunksingh]

I have received a letter over the weekend from hmrc that I am yet to discuss with my accountant but from how I am reading it they are basically saying they want the assessment figure previously demanded due to them winning the "Philip Boyle" case! .

Has anyone else received this?

Has anyone else read the Boyle case decision?

Did your scheme used an EBT? If Rangers, Dextra and other cases prove that Loans from EBTs are not taxable as emoluments, even if ToA gets applied it should only be to funds outside of EBT. Will be interesting to see what you accountant says. As far as I know, ToA should not be applied in first place. I know the reasons against ToA but got them from someone - not from my own research, thus cannot put them here.

[costo]

I have received a letter over the weekend from hmrc that I am yet to discuss with my accountant but from how I am reading it they are basically saying they want the assessment figure previously demanded due to them winning the "Philip Boyle" case! .

Did your letter specifically mention Boyle?

[jbryce]

There is an analysis of Boyle here:
boyle v hmrc | Ensign Taxation

I think there is real risk that, if HMRC get the proposed new "follower case" legislation, they will use Boyle to hit other schemes with payment notices.

...it also shows the nonsense in the "follower case" legislation. HMRC are winning, in their words, 80% of avoidance cases taken to court. My accountant's view is that Boyle was a nonsense scheme, poorly implemented; and probably deserved to lose - it was an easy target. It lost at the FTT, even the Rangers EBT managed to get past that stage.

All schemes are different and need to be assessed independently. If I receive such a letter, I will appeal the demand. They can jump up and down all they like, but as the law stands they need to take this to the FTT at which point we'll find out exactly how effective the Sanzar scheme actually was.

[Shrek77]

Did your letter specifically mention Boyle?

Yes-in full detail.

[DonkeyRhubarb]

Yes-in full detail.

Any chance of posting what it actually said about Boyle?

[LisaContractorUmbrella]

Any chance of posting what it actually said about Boyle?

Seconded - this could be significant

[varunksingh]

Any chance of posting what it actually said about Boyle?

Yes that would help

[cojak]

Yes-in full detail.

Hi Shrek, if you are concerned about posting this stuff on a public forum, I would advise that you send it to Lisa and Donkey Rhubarb via PM. They could the review and post their feedback here without giving any sensitive details out.

[creativity]

Yes-in full detail.

Shrek77,
Is C&M acting as your advisors for this year (or years)?