HMRC enquiries for EBT schemes through SANZAR

[jbryce]

I suspect that HMRC will get the legislation they want, which will enable them to issue demands and penalty's for late payment. I don't believe they will attempt to bankrupt anyone though.

That way, they stake their claim and in the event the taxpayer looses, they will also get all the penalty payments too.

...if they issue demands and people don't have the money to pay then Bankruptcy is the standard HMRC reply.
Heaven only knows is Sanzar was an effective scheme, the point is by the time that the case is tested in court it mat be too late, people's lives will have been changed irreversibly.

[varunksingh]

Whilst the issue of possible APN's is a very real concern, I think some people are missing the key fact here, that whether HMRC try and get people to pay up in advance or not, the main point is HMRC still believe that the Sanzar scheme (among others) is not valid.

I agree entirely the APN's are a crock of tulipe and will be legally challenged, but this still doesn't change the long term fact that HMRC are coming gunning for scheme users. Some they'll win and some they'll loose i'm sure, but one thing I am certain of is that HMRC are very unlikely to say 'ah you know what, lets drop it as we can't be bothered'. HMRC will only drop this if a court says that the scheme is water tight.

APN's or not, anybody already in receipt of an assessment would in my humble opinion be foolish if they're not currently working their finances to deal with the liability at some point in the future.

I'm in the same boat as everyone else on here, and I've started working my finances to make sure I can deal with it at SOME point. If HMRC forces people to pay up in 2, 3, 4 or more years, then anybody who hasn't taken the preceding years to try and at least get some of the money together is again in my opinion foolish.

I think some people peddle false hope on these forums. I really do hope that HMRC drop the issue or the court tells them that the Sanzar scheme was rock solid, but I'm not convinced either of those things is going to happen, and I for one believe that one day, sooner or later, HMRC will come knocking, and at that point I'll be very relieved that I started making plans when I did.

Very sensible post. Another thing I don't understand why more of us have not followed up with our MPs with face to face meetings. Most just seem to think this will go away on its own - which it will not!

[jbryce]

Very sensible post. Another thing I don't understand why more of us have not followed up with our MPs with face to face meetings. Most just seem to think this will go away on its own - which it will not!

I'm seeing my MP in about 10 days. I don't want to waste his time, so if anyone has a succinct set of points that I can use - that would be very useful (I'd like to focus on the injustice and potential abuse of powers, as opposed to some nutter libertarian agenda).

[SantaClaus]

If you're going to see your MP, book an appointment before the local elections on the 22nd of May. They may sit up and take a bit more notice when they want your vote.

[DotasScandal]

I'm seeing my MP in about 10 days. I don't want to waste his time, so if anyone has a succinct set of points that I can use - that would be very useful (I'd like to focus on the injustice and potential abuse of powers, as opposed to some nutter libertarian agenda).

Please see this page for some bullet points / inspiration

The front page of https://www.dotas-scandal.org/ also sums up the points that should be raised, more focused on the injustice and potential abuse of powers (we are not libertarian nutters, just honest professionals who do not intend to let ourselves burnt at the stake because the Gov. says we should ).

Hope this helps!
And well done arranging a face to face meeting with your MP - that's the way to go.

[Michael J Perry FCA]

SANZAR and HMRC

HMRC have been requesting the withdrawal of appeals concerning years up to 2007/08 for Sanzar Partnership Trust which has been alleged to fail under Section 58 and the decision in R Huitson v HMRC.

Before considering the withdrawal of an appeal, anyone affected by this should proceed with caution and check: Calculation of accrued interest on the tax due; Any further interest which may be due on payments on account for the following year; Surcharges on late payment; Penalties which are related to the tax return omissions.

On the subject of penalties, it is important to check the basis on which HMRC consider these to be exigible and you should be given a copy of the relevant Factsheets but do request them if not yet provided.

This ONLY relates to those in the scheme up to 5 April 2008. The scheme changed after that date and the position for later years has not yet been agreed with HMRC.

[varunksingh]

HMRC enquiries for EBT schemes through SANZAR

If R Huitson v HMRC is getting applied then I would assume Sankar scheme up to 07/08 was about trading partnership and using double taxation treaty.

This does NOT apply to EBT and loan schemes.

[DotasScandal]

Does or doesn't? I would have thought it doesn't apply to EBTs...

[DonkeyRhubarb]

HMRC have been requesting the withdrawal of appeals concerning years up to 2007/08 for Sanzar Partnership Trust which has been alleged to fail under Section 58 and the decision in R Huitson v HMRC.

Before considering the withdrawal of an appeal, anyone affected by this should proceed with caution and check: Calculation of accrued interest on the tax due; Any further interest which may be due on payments on account for the following year; Surcharges on late payment; Penalties which are related to the tax return omissions.

On the subject of penalties, it is important to check the basis on which HMRC consider these to be exigible and you should be given a copy of the relevant Factsheets but do request them if not yet provided.

If Sanzar are still around people should talk to them. There is a different grounds of appeal if you were in the DTA partnership scheme.

[Wingkuen]

Sanzar loan

I'm seeing my MP in about 10 days. I don't want to waste his time, so if anyone has a succinct set of points that I can use - that would be very useful (I'd like to focus on the injustice and potential abuse of powers, as opposed to some nutter libertarian agenda).

I have one question have been dealing with hmrc for months now

Why is it hmrc will not fight your corner if ever someone comes knocking for the loan? If they are so convinced that this is not a loan and is taxable income and you pay tax due why won't they represent you or commit to challenging the loan providers at a future date should the situation ever arise. They avoid this question entirely.