I will leave this extract of an FT article here, and invite comments:
"A taxpayer has lost a £3.1m dispute after a judge said that HM Revenue & Customs could challenge tax calculations that relied on its own algorithms. The tribunal ruled that users of tax computation software could not rely on its results, even though its technical specifications had been provided by HMRC. The case involved a scheme that employed insurance policies to create a massive deduction that was used to reduce the taxpayer’s other tax liabilities. HMRC accepted that it reduced his income tax bill, but rejected his argument that it also reduced his capital gains tax (CGT) bill.It's a funny old world where HMRC can inquire into its own data/algorithms!
The tax tribunal ruled that HMRC should not be stopped from making inquiries into aspects of tax returns that made use of information it provided. An adverse ruling would make HMRC “much more guarded about the assistance that it provides”, the judge said. “That could only be to the detriment of the majority of taxpayers who cannot afford to instruct professional advisers to complete their returns.”
Tax does have to be taxing.
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Nothing since 22nd, all gone to sleep out there?
ReplyDeleteThe current post is of some interest, surely?
Was the problem caused by information and/or algorithms provided by HMRC or the provider of the software or all of these potential issues?
Whatever, it needs appealing if any of the above apply.
Give you a clue folks, you can provide figures to them on a return or claim and find that when it is input and called back up they have got it wrong, might even be a[[lied to the wrong taxpayer (oops, sorry, customer).
Many people recognised long ago that this bunch have no integrity or any sense of shame.
ReplyDelete