HMRC enquiries for EBT schemes through SANZAR

[MrO666]

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?

If this becomes law, then yes I think it will become due.

If the assessment is wrong, then you can force HMRC to amend it (providing you can show them evidence of what it should be).

[sl4]

2008/09 rush

You bet. All the way back to 2004.

What I don't understand is why did HMRC bother to rush out the 2008/09 assessments (to be within the 4 year cut off window) if this is going all of the way back to 2004.

[Rex Munday]

What I don't understand is why did HMRC bother to rush out the 2008/09 assessments (to be within the 4 year cut off window) if this is going all of the way back to 2004.

Because they hadn't thought this one up this time last year.

It is completely outrageous.

[costo]

Because otherwise their window would have closed and they couldn't request the money up front....

There is still the question of whether the discovery notices were legal if everything was disclosed on your tax return.

[DonkeyRhubarb]

What I don't understand is why did HMRC bother to rush out the 2008/09 assessments (to be within the 4 year cut off window) if this is going all of the way back to 2004.

Because they can only issue an accelerated payment notice if they have opened an enquiry or raised an assessment.

[MrO666]

Because they can only issue an accelerated payment notice if they have opened an enquiry or raised an assessment.

So what's the position with regards to DOTAS registered schemes which to date HMRC haven't either raised an enquiry or issued an assessment (but are still well within the 4 year window) ?

Are HMRC now saying that if ANY scheme is DOTAS registered (even if it was registered today), then they will be demanding up front tax ? Or is this legislation aimed squarely at dealing with existing open enquiries and assessments ?

[costo]

My understanding is it is only if you have a open enquiry, which for most "aggressive" schemes happened as a matter of course. If within the 4 year window it would be in HMRC to open a discovery notice, although there are arguments to say these are actually not legal if full disclosure was given!

[MrO666]

My understanding is it is only if you have a open enquiry, which for most "aggressive" schemes happened as a matter of course. If within the 4 year window it would be in HMRC to open a discovery notice, although there are arguments to say these are actually not legal if full disclosure was given!

Thanks for this.

However, if this were to become law today, could they then open tomorrow a DA etc based on a DOTAS registered scheme (which they had never previously opened), and then demand up front payment ?

[DonkeyRhubarb]

Thanks for this.

However, if this were to become law today, could they then open tomorrow a DA etc based on a DOTAS registered scheme (which they had never previously opened), and then demand up front payment ?

Yes, subject to the time limits on DAs.

[MrO666]

Yes, subject to the time limits on DAs.

So what they're basically saying then, is the inclusion of a DOTAS number on a self-assessment will almost definitely result in the taxpayer being told to pay up, even before HMRC have even looked at what the scheme is or the hallmarks of it ?