Gloves are off for FILM schemes

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LisaContractorUmbrella replied

21 January 2016, 08:22
I don't pretend to really understand this type of scheme but, from what I've read, films were made using money from the investors, some lost money which enabled the investors to claim a loss against borrowings. It may be that the films were badly made intentionally (although I'd be surprised) to give investors a tax advantage but not all lost money from what I can make out so it doesn't appear to be a completely sham arrangement. Films were made and losses incurred - where does the 'evasion' come from???? Especially odd as this was in the finance bill:

The bill also contains key policies to make the UK more competitive for business, such as:
• supporting investment in the crucial UK oil and gas industry through cutting the Supplementary Charge by 12%, cutting the Petroleum Revenue Tax from 50% to 35% and introducing two new allowances
• increasing the tax credits available for large and small businesses investing in research and development
• a new tax relief to promote the production of children’s TV in the UK, and further support for high-end TV and film tax.

I can't help wondering if there's a little bit of scape-goating going on here
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LadyPenelope replied

20 January 2016, 20:21
Ooooh, now that is interesting. I guess HMRC will have to prove one of the EBT schemes to be illegal first and prosecute those who ran the scheme, then maybe we might have an insurance claim. I did not know there was an insurance scheme for this. Wow.
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webberg started a topic Gloves are off for FILM schemes

15 January 2016, 15:41
Gloves are off for FILM schemes

Ex-advisers charged with multi-million pound tax fraud

Interesting thing here is that although the principals of the promoter (Zeus) are in the dock (literally) they are being joined by a number of promoters of the investment.

If (and it's a big if) the promoter and intermediaries are convicted, I wonder if that makes it easier to prosecute them for (investment) loss and/or claim against one of the Government controlled insurance schemes. If so, is there a read across to promoters of contractor arrangements that might ultimately prove to have been ineffective?

I'm not lawyer enough to be able to answer that, but answers on a postcard please.
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