As per the FT:
“The settlement opportunity will provide the certainty of some measure of tax relief whereas litigation may result in a worse outcome.”It said the offer was “cost-effective and consistent with the law”, adding that it would increase the pace of investigations and litigation for those that refused the offer. Taxpayers who settle will be charged interest but are unlikely to face penalties.
This of course is a tacit admission by HMRC that they cannot cope with the backlog of 41,000 tax avoidance cases.
Tax does have to be taxing.
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No surprises there then.
ReplyDeleteForeseen by all, ignored by HMRC/HMG until it was obvious even to the hoodwinked.
Anyone who inhabits the normal world who has been fined, penalised, forced to pay interest and surchage, been bankrupted, forced out of business, had their assets removed or had to sell the family home should be banging on the door of their MP's.
This absolutely stinks and is proof, if it were required that HMRC is in total meltdown.
Who is responsible for this debacle?
Just read this emerging thread.
DeleteWhat happens the next time there is a backlog or they are shown to be incapable of dealing with whatever remains of this one?
Sung to the tune of the Coca Cola Xmas advert
ReplyDeletePrivatise is coming, Privatise is coming...
You could put a team in there selected from the unemployed who would do a better job than this bunch of halfwits,
There are people out there from all walks of life with related experience to sort this mess out. Led by a small team of top class redundant business managers reporting directly to a Minister.
The current mess cannot continue HMRC/HMG are laughing stock Nationally and Internationally.
The point being here that the tax avoidance arrangements are LEGAL.
ReplyDeleteThey should clear the backlog by looking at the strict legality and pass them all. THEN if they don't like the result, change the law to plug the loophole. K.I.S.S. (no not the glam rock band - Keep It Simple, Stupid!)
Witchy,
DeleteAs someone who has worked on avoidance cases (though not the ones that are the subject of this announcement) I can confirm that that is exactly what the strategy is for dealing with schemes that work: "pass them" and, if appropriate, legislate to plug the loophole.
These clearly don't fall into that category: if HMRC felt the schemes worked there is no way they'd be doing this.
It's possible, of course, that if these schemes went to court, they might be found to work. As with any civil legal dispute (with or without HMRC), it's up to the would-be litigants whether to settle out of court or take their chances.
Stew G
Doohh!
ReplyDeleteIsn't that what they are supposed to have been doing for some years now?
VAT used to have TAVO's I believe (Tax AVoidance Officers) whose job strangely enough was to look at...yep, Tax Avoidance. I think they were specialists in partial exemption and land and property.
And thats what they were there to do, closing the loopholes in the process, seemples.
"This of course is a tacit admission by HMRC that they cannot cope with the backlog of 41,000 tax avoidance cases."
ReplyDeleteYou're probably right, Ken. How would you suggest they should deal with it?
Stew G
I am not Ken.
DeleteHowever, HMRC could try kicking shite out of the Treasury and the M.P.'s insisting that the law makers, for that is what is being avoided, should change the fecking legislation. the idiots in power (IIP-remember that?) should be forced to do something positive. Start by banning offshore (UK) tax havens...