Edge EBT thread

[trev88]

I'm still waiting for HMRC

I sent the forms back in Nov saying.....Yes, I'll settle. Please can I pay ASAP to clear it before anymore interest accrues.....
Amazed they haven't felt a need to take my money. I have no Loans outstanding, they were repaid I month after I left Norla in July 2005. Only with them for 2-3months.
When are they going to finalise it ?

[AlCapone]

I sent the forms back in Nov saying.....Yes, I'll settle. Please can I pay ASAP to clear it before anymore interest accrues.....
Amazed they haven't felt a need to take my money. I have no Loans outstanding, they were repaid I month after I left Norla in July 2005. Only with them for 2-3months.
When are they going to finalise it ?

That's interesting. So if you paid the loans back how can HMRC be treating them as income?

[AlCapone]

Had a cursory search, doesn't look like Mapatui are still around. They may have Pheonixed or been bought up. Guess it will take some digging to find where the loans are now.

Don't know if this would apply to EBT loans but there is a 6 year statue of limitations on debt:

What does 'statute-barred debt' mean?

[gettingangry]

On my tax return I placed the DOTAS number in the relevant space I also told them specifically what I was doing with regards a tax avoidance scheme and lastly I placed my loans received in the White space still they used discovery.

We are fighting a losing battle

· Jurisdiction: United Kingdom
The Upper Tribunal determined that the inclusion of the DOTAS SRN number and other information in the taxpayers' tax returns prevented HMRC from making a discovery assessment because an officer could reasonably have been expected from that information to have been aware of the tax understatement. The Upper Tribunal also considered the meaning of "discovery" and the qualities of the hypothetical officer. (HMRC v Charlton, Corfield & another [2012] UKFTT 770 (TCC).)

[phil5476]

Long Gone

Would you know (in the case of a Norla EBT) how one would go about doing this?

I tried to contact them via phone, in writing etc. If you look at the companies register for the Isle of Man you will find out they have wound the companies up. These companies have re-appeared in Panama's company register. My guess is that is where they have placed all the money.

So in short there is no way to have the loans written off that I have discovered as I simply cannot locate the orginators of the scheme.

As my accountant said: 'they are long gone'.

[webberg]

I tried to contact them via phone, in writing etc. If you look at the companies register for the Isle of Man you will find out they have wound the companies up. These companies have re-appeared in Panama's company register. My guess is that is where they have placed all the money.

So in short there is no way to have the loans written off that I have discovered as I simply cannot locate the orginators of the scheme.

As my accountant said: 'they are long gone'.

You may find that if the owner of the debt is untraceable or unable to enforce collection in the UK (or a country with a suitable treaty) then the loan is legally written off. (Please check this as I'm not a lawyer and my days as a banker ended nearly 10 years ago).

Does that solve the tax issue though?

If you have received cash under a loan agreement and now have no way to repay it, is it really a loan? Or is it remuneration in some disguised form? Does the fact that the lender doing something unexpected post making the loan impact the analysis? Does a legal write off (if indeed that is the position) give rise to potential IHT problems (see numerous threads here)?

Sorry but lots of questions with no answers. If your scheme has no action group, now might be a good time to start one. (for the record, I'm not volunteering or touting for business)

[foobar]

s29 group

I've tried numerous times. Filled in the contact form on the website, sent emails. Nothing.

You ever hear back from s29 group? I have emailed them several times but just getting a 404 error...Can anyone confirm this group is still active ?

[TheDandy]

You ever hear back from s29 group? I have emailed them several times but just getting a 404 error...Can anyone confirm this group is still active ?

It is still active. PM me.

[SimonJones]

Can someone help with my query... If loan are classed as income than how can HMRC also apply IHT? Isn't this double taxation!

[StrengthInNumbers]

It has to be. Will be interesting what stance HMRC will take in courts.