"Scams For Scumbags" To Appeal Against HMRC

The Guardian reports that Ingenious, the investment firm that persuaded celebrities, sports stars and business leaders to invest in controversial film partnership schemes will today launch an appeal against HMRC that could cost  HMRC up to £1bn.

Stars from the worlds of sport and entertainment, including David Beckham, Ant and Dec and Jeremy Paxman, are among those who put money into investment schemes run by the Ingenious Group, a financing company that funded more than 60 films including Avatar and Brooklyn.

In what is set to be the longest tax tribunal appeal ever, Ingenious will fight to overturn the court’s decision that HMRC was correct in deciding that the investments should not give rise to tax relief for their investors.

Ingenious, which said it was offering legitimate investment in the film industry, has been accused by HMRC of tax avoidance (which is perfectly legal), with a former HMRC boss (David Hartnett) describing its schemes as “scams for scumbags”.

An estimated £620m worth of tax relief was claimed by investors, which, combined with interest, means £1bn is at stake if HMRC loses the case.

Tax does have to be taxing.

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"They Completely Fucked Up.."

David Gower, who was advised to go into The Ingenious Film Partners 2 LLP scheme (on which the Upper Tribunal confirmed that HMRC was right to deny investors a tax break) by a financial adviser, told the Daily Mail.

"People were accusing the innocent investors of trying to evade responsibilities. That is completely untrue.

Innocent investors went in on advice and if anyone has been immoral and unfair it’s HMRC. They completely fucked up the way they did it."

Ingenious will appeal the ruling.

Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"

Hartnett Broke The Prime Directive

As loyal readers are aware Hartnett has hit the headlines again, the Supreme Court has ruled unanimously that HMRC unlawfully disclosed confidential information to journalists about financial advisors Ingenious Media, known for promoting film investment schemes.

Hartnett gave journalists from The Times an "off the record" briefing in 2012.

Economia reports that during the course of the briefing, agreed to be “off the record”, the journalists instigated a conversation with Hartnett about Ingenious, its CEO Patrick McKenna about a film investment scheme. Some of the information was used in a later Times story.

A 2013 High Court judgment struck out Ingenious' breach of confidentiality claim against HMRC on the basis that the briefing was off the record. Ingenious also lost an appeal in 2015.

The highest court in the land, however, ruled that HMRC had breached its duty of confidentiality.

Lord Toulson, the Supreme Court justice, said in his ruling, “The information supplied by Mr Hartnett to the journalists about Mr McKenna and Ingenious Media was confidential in nature, in respect of which HMRC owed a duty of confidentiality.”

“The fact that Mr Hartnett did not anticipate his comments being reported is not a justification for making them. The desire to foster good relations with the media and to publicise HMRC’s view about tax avoidance schemes and speculation that the journalists may have subsequently informed Mr Hartnett about other tax avoidance schemes do not provide sufficient justification for the disclosures either.”

Ingenious has been awarded costs and is now considering whether to seek compensation.

As some of you have also observed, this breach of taxpayer confidentiality strikes at the very core of HMRC's "prime directive" of confidentiality.

As per Lord Toulson:

“The whole idea of HMRC officials supplying confidential information about individuals to the media on a non-attributable basis is, or should be, a matter of serious concern.”

Will Hartnett and those others responsible be prosecuted for this?


Tax does have to be taxing.

Professional Cover Against the Threat of Costly TAX and VAT Investigations

Insurance to protect you against the cost of enquiry or dispute with HMRC is available from several sources including Solar Tax Investigation Insurance.

Ken Frost has negotiated a 10% discount on any polices that may suit your needs.

However, neither Ken Frost nor HMRCISSHITE either endorses or recommends their services.

What is Solar Tax Investigation Insurance?

Solar Tax Investigation Insurance is a tax-fee protection service that will pay up to £75,000 towards your accountant's fees in the event of an HM Revenue & Customs full enquiry or dispute.

To find out more, please use this link Solar Tax Investigation Insurance



HMRC Is Shite (www.hmrcisshite.com), also available via the domain www.hmrconline.com, is brought to you by www.kenfrost.com "The Living Brand"