HMRC enquiries for EBT schemes through SANZAR

[DonkeyRhubarb]

He might have every right but HMRC are now ruling by decree and really couldn't care less

Nothing new there, they've been a law unto themselves for quite a long time.

[MrO666]

I think after this period of time, HMRC would have a hard time trying to justify that they've taken his money, not chased him in any way shape or form about it, but then didn't think he had a case to ask for closure.

[Michael J Perry FCA]

HMRC Consultative Document - marketed tax avoidance schemes

HMRC are considering further measures against DOTAS scheme users such as Sanzar Partnership Trust and Sanzar Solutions.

Please contact your Member of Parliament to object against the proposed legislation.

The response document will be published on 19 March 2014 and could become law by the summer.

[MrO666]

HMRC are considering further measures against DOTAS scheme users such as Sanzar Partnership Trust and Sanzar Solutions.

Please contact your Member of Parliament to object against the proposed legislation.

The response document will be published on 19 March 2014 and could become law by the summer.

Further measures such as what exactly ?

They're already trying to get the right to demand money without any point of proof, i'm not exactly sure what else they could do....not like they can hang you.

I genuinely fail to see that they could do ANY more, other than demand the money and possibly add interest and penalties.

[DesparateDan]

Mail on Sunday Article

Further measures such as what exactly ?

They're already trying to get the right to demand money without any point of proof, i'm not exactly sure what else they could do....not like they can hang you.

I genuinely fail to see that they could do ANY more, other than demand the money and possibly add interest and penalties.

Article in the Mail on Sunday claims a new law will be announced, this week and implemented in July allowing HMRC to demand payment (within 30 days), from any schemes under investigation.
(Going back up to 15 years)
(But obviusly they will refund it, if they lose the case (and the appeal), whenwer they finally get round to trying it)
Seems unjust, (and hopefully illegal) and will leave HMRC with absolutely no incentive to ever progress any of these cases.

I feel absolutely powerless now - but feel we should try all means to argue against the new law. I have never written to my MP before, it may have no effect, but I think he will be getting weekly letters and e-mails from me from now on (while I can still afford the postage anyway)

I now see this has been under discussion for some tim especially by the BN66 groups and there was an opportunity to express your views to HMRC, but it closed in February.

From their overview:
In the Autumn Statement at the end of last year, the Chancellor of the Exchequer announced that he intended to bring forward measures which would allow HMRC to demand payment up front in cases where they dispute a person’s tax arrangements, with the money only being returned if the taxpayer is successful in defending their position in the tax courts.

The Government has since published a consultation document on the subject of ‘Tackling marketed tax avoidance’. This consultation says that the Government intends to introduce an accelerated payment measure linked to the issuing of a follower notice during tax disputes. Essentially this will give HMRC the arbitrary power to declare that a user’s tax arrangements are linked to another person’s tax dispute and to demand money up front with no right of appeal if that third party loses their case, even if there are potentially substantial differences between the tax arrangements in question.

However, and much more importantly, HMRC will also be given the power to issue a payment notice to demand that disputed tax is paid on a DOTAS registered scheme before anything has been heard in the tax courts. This power will apply retrospectively to almost all DOTAS registered tax planning arrangements, including ones using double taxation treaties, going back to 2004. If HMRC are granted these powers, it will allow them to demand almost immediate payment of disputed tax before we have had the chance to have our case heard at the FTT.

Desperate Dan

[dezze]

Article in the Mail on Sunday claims a new law will be announced, this week and implemented in July allowing HMRC to demand payment (within 30 days), from any schemes under investigation.
(Going back up to 15 years)
(But obviusly they will refund it, if they lose the case (and the appeal), whenwer they finally get round to trying it)
Seems unjust, (and hopefully illegal) and will leave HMRC with absolutely no incentive to ever progress any of these cases.

I feel absolutely powerless now - but feel we should try all means to argue against the new law. I have never written to my MP before, it may have no effect, but I think he will be getting weekly letters and e-mails from me from now on (while I can still afford the postage anyway)

I now see this has been under discussion for some tim especially by the BN66 groups and there was an opportunity to express your views to HMRC, but it closed in February.

From their overview:
In the Autumn Statement at the end of last year, the Chancellor of the Exchequer announced that he intended to bring forward measures which would allow HMRC to demand payment up front in cases where they dispute a person’s tax arrangements, with the money only being returned if the taxpayer is successful in defending their position in the tax courts.

The Government has since published a consultation document on the subject of ‘Tackling marketed tax avoidance’. This consultation says that the Government intends to introduce an accelerated payment measure linked to the issuing of a follower notice during tax disputes. Essentially this will give HMRC the arbitrary power to declare that a user’s tax arrangements are linked to another person’s tax dispute and to demand money up front with no right of appeal if that third party loses their case, even if there are potentially substantial differences between the tax arrangements in question.

However, and much more importantly, HMRC will also be given the power to issue a payment notice to demand that disputed tax is paid on a DOTAS registered scheme before anything has been heard in the tax courts. This power will apply retrospectively to almost all DOTAS registered tax planning arrangements, including ones using double taxation treaties, going back to 2004. If HMRC are granted these powers, it will allow them to demand almost immediate payment of disputed tax before we have had the chance to have our case heard at the FTT.

Desperate Dan

If this goes through, then there will be tens of thousands of people with no way to pay up - will HMRC accept payment terms, or just make everyone bankrupt?

[jbryce]

C'mon if you think you're hard enough

If this goes through, then there will be tens of thousands of people with no way to pay up - will HMRC accept payment terms, or just make everyone bankrupt?

Well, in reality if the legislation goers through as hinted in the Daily Mail (?) article it will most likely be subject to a judicial review as it really is giving HMRC far too many powers.
Given that, the piece isn't presenting anything we do not know already. We should wait and see.

>will HMRC accept payment terms, or just make everyone bankrupt?
Having to manage several thousand 'time to pay' arrangements will stretch HMRC, so it may be that, totally unintentionally, they do force many bankruptcies.
Whatever, I'm resolved to fighting it. There are no definitive cases that say, one way, or another that Sanzar was ineffective and that it is a case fora follower case.

[ffrancis]

Rightly scared

I discovered this site and thread only yesterday, until such time I had been totally ignorant to the trouble I am in. I used Sanzar Partnership in 08/09 for several months. I recall receiving a requested to sign something declaring my involvement with the scheme mid 09 which I did. Since then I've heard nothing, I've not received any letters from HMRC regarding investigations or requests for payments but I'm no longer at the same address.

I don't doubt they'll be coming for me and I'm terrified. Why have I not been contacted? What if the letter just hasn't reached me? And what do I do if I end up owing tens of thousands? I simply don't have it.

I don't know what to do, where to start or who to go to for advice. Is contacting HMRC really stupid or really sensible at this point? Or is my first call to a tax specialist, and if so which? If Cobham Murphy, must this be by referral?

I'd really appreciate any advice anyone can give me, please please, please!

@Admin - could you please grant me PM rights?

[vern19]

I discovered this site and thread only yesterday, until such time I had been totally ignorant to the trouble I am in. I used Sanzar Partnership in 08/09 for several months. I recall receiving a requested to sign something declaring my involvement with the scheme mid 09 which I did. Since then I've heard nothing, I've not received any letters from HMRC regarding investigations or requests for payments but I'm no longer at the same address.

I don't doubt they'll be coming for me and I'm terrified. Why have I not been contacted? What if the letter just hasn't reached me? And what do I do if I end up owing tens of thousands? I simply don't have it.

I don't know what to do, where to start or who to go to for advice. Is contacting HMRC really stupid or really sensible at this point? Or is my first call to a tax specialist, and if so which? If Cobham Murphy, must this be by referral?

I'd really appreciate any advice anyone can give me, please please, please!

@Admin - could you please grant me PM rights?

If you contact a tax advisor they will probably advise contacting HMRC. That way they can make some money. Maybe best to plead ignorance and wait for them to catch up with you. In the mean time start saving

[jbryce]

I discovered this site and thread only yesterday, until such time I had been totally ignorant to the trouble I am in. I used Sanzar Partnership in 08/09 for several months. I recall receiving a requested to sign something declaring my involvement with the scheme mid 09 which I did. Since then I've heard nothing, I've not received any letters from HMRC regarding investigations or requests for payments but I'm no longer at the same address.

I don't doubt they'll be coming for me and I'm terrified. Why have I not been contacted? What if the letter just hasn't reached me? And what do I do if I end up owing tens of thousands? I simply don't have it.

I don't know what to do, where to start or who to go to for advice. Is contacting HMRC really stupid or really sensible at this point? Or is my first call to a tax specialist, and if so which? If Cobham Murphy, must this be by referral?

I'd really appreciate any advice anyone can give me, please please, please!

@Admin - could you please grant me PM rights?

Contact the Contractor Helpdesk - they seem to be managing this for the moment, and appear to be liaising with Cobham Murphy.
If you read the threads you will see that the current state of play is somewhat fluid at the moment, so I think you may have to be patient.
If you were in the scheme, then HMRC will have you in their sights, however you are not obliged to volunteer any information.