Tax Avoidance

EBTs – “Going forward, it is unlikely that any assessments to tax they (HMRC) issue will be anywhere near as generous as was previously available”

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Source: Ogier via mondaq 23 July 2017

“HMRC’s successful appeal against the owners of the now-liquidated Glasgow Rangers FC is likely to lead to further challenges against Employee Benefit Trusts (EBT) and other loan and benefit schemes that have not yet gone through the settlement process, says Employee Incentives specialist Katherine Neal of Ogier.”

Source article here


HMRC wins again, ‘brain disorder research’ scheme guilty of tax avoidance

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Source: HMRC 20 July 2017

HM Revenue and Customs has won a legal battle against a tax avoidance scheme, which claimed £122 million was spent on research into brain disorders, when only £7 million of it reached a genuine research company.

The win against Brain Disorders Research Limited Partnership protects taxes worth £29 million.

The organisation said the money was going to research into depression and Attention Deficit Hyperactivity Disorder (ADHD) but they claimed reliefs on artificial loans and large amounts of capital allowances. Read the rest of this entry »

“HMRC collects £4bn through pay now, dispute later rules”

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Source: ft 17.07.2017

“HM Revenue & Customs (HMRC) has collected more than £4bn through the ‘pay now, dispute later’ rules for people who have used a tax avoidance scheme.

More than 75,000 accelerated payment notices (APNs) have been issued to people under enquiry for tax avoidance since rules were introduced in 2014.

HMRC has now issued APNs on all the schemes that were already under investigation when the new rules came in.”

Source article here


Netherlands corporate tax haven in the spotlight

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Source: tax justice network 14 July 2017

“The status of the Netherlands as a corporate tax haven is coming under increasing scrutiny. A recent investigation by the newspaper NRC found that multinationals are able to negotiate tax deals with the Dutch tax authority which allows companies to reduce their tax bill to as low as 5%.”

“The article focuses on the recent case of an Israeli chemicals company, IRC. Letters between the company and their tax avoidance advisors, E&Y, show that IRC choose the Netherlands as the location for its headquarters over Switzerland, because the Dutch were offering a better tax deal.”

“A similar tax deal is also revealed in an extensive report released by Oxfam. More details about the report can be found on the tax justice network blog. The investigation by the charity focused on global household goods maker RB, and their corporate restructuring. This involved setting up a hub in the Netherlands. There the Dutch tax authorities were offering a deal to exclude 75% of their profits from tax.”