Reply to: IOM vs UK company?

[BrilloPad]

Probably they have hacked into this forum already anyway and we're all on their watch list

I don't think they are clever enough. They are bullies.

[Eirikur]

No. HMRC can do what they want....

Probably they have hacked into this forum already anyway and we're all on their watch list

[BrilloPad]

They may need IP addresses

No. HMRC can do what they want....

[BrilloPad]

We don't need to be happy - this is a public forum which HMRC read regularly and CUK has already been quoted in the tax courts m'lud.

I believe ************'s name was even mentioned.

Its a great pity as quite a lot of what is posted on CUK is nonsense. But HMRC can submit what they want it seems.

And please don't swear.....

[Eirikur]

We don't need to be happy - this is a public forum which HMRC read regularly and CUK has already been quoted in the tax courts m'lud.

I believe BolshieBastard's name was even mentioned.

They may need IP addresses

[cojak]

Please post back in a couple of years from HM prison.
Ofcourse the mods are happy to provide this thread to HMRC as evidence you were deliberately trying to avoid tax

We don't need to be happy - this is a public forum which HMRC read regularly and CUK has already been quoted in the tax courts m'lud.

I believe BolshieBastard's name was even mentioned.

[cojak]

I thank you all for your replies. Much appreciated.

This advice was given to me by one of the top firms and would set me back $xx,xxx a year.
I am not domiciled in the UK since my father is not British. Their advice was for me to work
as a "consultant" for the IOM company and get paid a fee to an offshore bank account.

If not, I could keep all the profits in the company and then don't cash out until I leave the UK
and move to a tax haven. I am going to use this strategy regardless. At least that one will work?

Then I advise you not to use this username when HMRC come knocking to bend you (but not your tax advisor) over a barrel.

Because we WILL point and laugh at you.

[Eirikur]

I am going to use this strategy regardless.

Please post back in a couple of years from HM prison.
Ofcourse the mods are happy to provide this thread to HMRC as evidence you were deliberately trying to avoid tax

[LisaContractorUmbrella]

It all depends. HMRC don't decide. The facts are decide in court/tribunal and the law applied to those. HMRC may push a civil route or they may pursue a criminal route. In any event interest and penalties (which can be very large will apply).

On 5m you are potentially looking at 1m in unpaid taxes. Penalties up to 100% and interest.

The level of legal fees you expose yourself to depends how far you want to go. It would be quite easy to have a 7 figure bill if you want to push it a long way.

And even if you win, the chances of getting your legal costs back from HMRC are slim to none

[john@UKCA]

Tax Avoidance Scheme with Dutch Sandwich

Did anyone catch the TV programme a few weeks back where a town took on the Taxman looking to establish a IOM tax haven?

They went to IOM headquarters for Starbucks (I think it was ) and asked for some coffees.

[ASB]

Sorry, I was out of internet for a few days attending a wedding.

Are you saying that if it would be taken up in court and the HMRC would decide that the company is and has been a resident in the UK,
all that happens is that I will have to pay the missed taxes? There is no jail time, hefty fines etc?

Lets say you made £5,000,000 in profits during a period of 5 years. After 5 years, the court decides that the company was resident in
the UK all along. What would be the loss?

If all I can lose are some legal fees, I don't see why not to try it. The potential loss is relatively small, the potential upside is huge.

It all depends. HMRC don't decide. The facts are decide in court/tribunal and the law applied to those. HMRC may push a civil route or they may pursue a criminal route. In any event interest and penalties (which can be very large will apply).

On 5m you are potentially looking at 1m in unpaid taxes. Penalties up to 100% and interest.

The level of legal fees you expose yourself to depends how far you want to go. It would be quite easy to have a 7 figure bill if you want to push it a long way.

[Scruff]

Gladiators on the internet are the International Tax Advisors of the future. I would suggest paying for Legal Tax opinion by one of the silk members of the Bar, as a start, if you really have the intention of operating through an IoM incorporated Body.

[BrilloPad]

Sorry, I was out of internet for a few days attending a wedding.

Are you saying that if it would be taken up in court and the HMRC would decide that the company is and has been a resident in the UK,
all that happens is that I will have to pay the missed taxes? There is no jail time, hefty fines etc?

Lets say you made £5,000,000 in profits during a period of 5 years. After 5 years, the court decides that the company was resident in
the UK all along. What would be the loss?

If all I can lose are some legal fees, I don't see why not to try it. The potential loss is relatively small, the potential upside is huge.

There would be interest and legal fees.

The legal fees would be your biggest worry. You would have to cover your costs and that of HMRC.

You would also have stress and worry.

You would also have to pay up immediately via an APN. So if you win you would not see the money for 10 to 20 years. But all your costs come immediately.

[LordCharles]

If you are non dom are you taxed on the remittance basis?

One substantial thing you must deal with is to ensure the iom company does not hecome uk resident.

if you are resident in the uk and exercise control over it then this may be tricky.

if it were straight forward and cost effective then it would be much more common.

what you want can be done with a lot of expensive advice running costs and a bespoke solution. Any off the shelf solution is likely to cause difficulties at some point and defending it will be expensive. If you did win you still get to pay the costs.

if you dont you get to pay those and the disputed tax and penalties. Depends how lucky you feel really.

Sorry, I was out of internet for a few days attending a wedding.

Are you saying that if it would be taken up in court and the HMRC would decide that the company is and has been a resident in the UK,
all that happens is that I will have to pay the missed taxes? There is no jail time, hefty fines etc?

Lets say you made £5,000,000 in profits during a period of 5 years. After 5 years, the court decides that the company was resident in
the UK all along. What would be the loss?

If all I can lose are some legal fees, I don't see why not to try it. The potential loss is relatively small, the potential upside is huge.

[Fred Bloggs]

Move to the IoM!

TBH, I think the OP needs to think about moving lock stock and barrel to the IoM. Sell any property on the mainland etc and cut ties with the UK as far as possible. I know someone who moved his business and family to the IoM and he refers to it as paradise island. Running an eCommerce company can be based anywhere. Good to the OP, I say. I wish I could do it.