HMRC enquiries for EBT schemes through SANZAR

[cojak]

Christ no, just wondered what made them so different 'in their view' that they were immune from HMRC's unwanted advances....

Ah, right you are.

[cojak]

If you want to "save" tax at the moment, use one of the statutory relief systems such as EIS/VCT etc.

And be aware Rob79, I'm keeping a close eye on your future posts and will take action if you start touting said 'systems'..

[Rob79]

I am in no position to, have no desire to and no intention of flogging any "system" which takes money from users of this forum.

Warning noted.

[Rob79]

Mr O666.

There are time limits for HMRC to respond to tax returns. Generally these are 12 months from the date of submission. That can be extended where negligence, willful default or fraud are suspected. In the worst instance (fraud), the time limit is 6 years. Where that fraud is proven, they can go back a further 6 years and so on.

DOTAS arrived in 2004 with many schemes really caught from perhaps early 2006. Clearly most of those are now outside the time limits. Provided you have made an appropriate declaration on your return and HMRC have either not raised an enquiry or have closed that year, then in theory you are home and hosed.

BUT...

HMRC has the power of "discovery". That means that where new facts come to light or a new interpretation of old facts is made, HMRC has the ability to reassess closed years. The extent of proof required to make a discovery has fallen in recent years as the Courts have bent over backwards to support the Revenue. Challenges on whether discovery is valid have largely failed.

It is therefore possible that pre DOTAS schemes or schemes that are post DOTAS rules, but not disclosed, could be caught under these rules.

If tax is due in such circumstances, there is also interest (for a 2004 liability perhaps around 40% to 45% of tax due) and possible a penalty.

HMRC has been known to miss deadlines (see the recent furore over Liberty) but its rare. IN Liberty they missed less than 20 taxpayers in 1600.

[TonyTucker]

I'm hearing that hmrc will write to the scheme providers around 6 weeks before any APN. This is to allow them to "prepare" their clients.

As Sanzar no longer exists as a company, wondering how that will affect us.

I'd like as much notice as possible...

[Rob79]

You are correct Mr Tucker.

Quite who gets notice of the notice where the promoter no longer exists or is no longer interested in helping their former clients is uncertain.

There may be some way of intervening in that process in such situations. I'll have a dig around.

[MrO666]

I'm hearing that hmrc will write to the scheme providers around 6 weeks before any APN. This is to allow them to "prepare" their clients.

As Sanzar no longer exists as a company, wondering how that will affect us.

I'd like as much notice as possible...

As for notice, you don't need it, you know that APN is 100% coming so I'd start preparing for it now. The DOTAS number for Sanzar is on the published list, so it's coming.

I'd start preparing now, then if you don't get it for another year, great, you get a little interest on the money in your bank.

[TonyTucker]

Had a reply back from my MP re: situation and retrospective nature of new laws. Needless to say he wasn't sympathetic at all. Basically he's toeing the party line....

Just hope he gets exposed one day as I'll be knocking in his door and going "haaa haaaa" a la Simpsons.

[Shrek77]

NI

Accelerated tax payment provisions to be extended to NIC avoidance schemes

Will this affect us ? Or is that a silly question!

[Safe]

Accelerated tax payment provisions to be extended to NIC avoidance schemes

Will this affect us ? Or is that a silly question!

No it will affect us.