HMRC enquiries for EBT schemes through SANZAR

[creativity]

see the link below for the process
Finance Act 2013 — UK Parliament

Great link thanks.
Well nothing new today - it was always going to go this far, let's see what changes during the above process.

By the way how would HMRC recover monies people haven't got? And for those who could afford it I guess many will be leaving the UK now or filing for bankruptcy ahead of the queue.

[MrO666]

Great link thanks.
Well nothing new today - it was always going to go this far, let's see what changes during the above process.

By the way how would HMRC recover monies people haven't got? And for those who could afford it I guess many will be leaving the UK now or filing for bankruptcy ahead of the queue.

I know people say that HMRC won't take payment plans over 2 years etc etc........I'm sure if your liability is enough to warrant it, then I'm sure they will take a payment plan. Afterall, you either tell them it's a plan or it's nothing and you can make me bankrupt......go for it..........I'm sure they'd work with you.

[Rex Munday]

Is it effectively retrospective?

1.200
Tax avoidance scheme promoters must give HMRC information about schemes they
promote under the Disclosure of Tax Avoidance Scheme (DOTAS) rules. Anyone using such
a scheme must declare to HMRC they are using a notified tax avoidance scheme. Following
consultation,
this Budget announces that the government intends to extend the new
requirement for taxpayers to pay upfront any disputed tax associated with schemes
covered by the DOTAS rules or counteracted under the General Anti Abuse Rule
(GAAR).
1.201
This new power will remove the cashflow advantage for the taxpayer of holding onto
the disputed tax during an avoidance dispute. It will also provide HMRC with additional tools
to address a legacy stock of an estimated 65,000 avoidance cases. The new power will only
apply to tax avoidance schemes that are disputed by HMRC. The legislation will make it clear
that HMRC will only be able to issue an accelerated payment notice where they have first sent
the taxpayer an enquiry notice or issued them with a notice of assessment. It is not a new tax
demand and does not make any changes to tax liabilities. If the taxpayer subsequently wins their
case in the courts, they will be reimbursed with interest.

Is this going back as well as forward?

[DonkeyRhubarb]

Is this going back as well as forward?

You bet. All the way back to 2004.

[Rex Munday]

You bet. All the way back to 2004.

So any tax return declared using a DOTAS, whether it has been challenged or not until now, will be subject to reassessment and a tax bill?

[MrO666]

Does anybody know who if anyone will try and argue against this before it becomes law ?

[DonkeyRhubarb]

So any tax return declared using a DOTAS, whether it has been challenged or not until now, will be subject to reassessment and a tax bill?

No, they have to have challenged it either by opening an enquiry or issuing an assessment.

[DonkeyRhubarb]

Does anybody know who if anyone will try and argue against this before it becomes law ?

We (NTRT) and our lobbying company Whitehouse will be for starters. I've also heard that other parties are joining the fray.

Realistically, it will be a massive uphill struggle to prevent it becoming law. The Govt usually gets what it wants.

Also realistically, it will be very difficult to overturn it afterwards via Judicial Review since, in the eyes of the courts, Parliament is supreme.

[MrO666]

From memory, wasn't it a case of of you don't pay it we will add penalties and interest ?

I can't remember anything about them trying to enforce payment. As has been said, I can't see how they can force you to pay something that they can't / won't stand in a court and say you owe.

Dangerous I agree as if it goes against you then you've got all the penalties too, but still an option, depending on how strong you think your case is.

[Rex Munday]

No, they have to have challenged it either by opening an enquiry or issuing an assessment.

Yes, but they can do that on a whim right?

I received a notice of assessment last year related to a discovery for the tax year 2008-2009. I appealed but will that now automatically become due?