New corporate criminal offence: what will an investigation look like? – OUT-LAW.com

Posted June 6th, 2017 in crime, financial regulation, HM Revenue & Customs, news, tax evasion by tracey

‘HMRC has stepped up its criminal investigations into corporates, without waiting for the new corporate offence of failing to prevent the facilitation of tax evasion to become effective Large companies should refresh their raids and critical incident procedures in case HMRC officers appear without warning.’

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OUT-LAW.com, 5th June 2017

Source: www.out-law.com

HMRC steps up inquiry into employment status of Hermes couriers – The Guardian

‘HM Revenue & Customs has stepped up its investigation into the delivery company Hermes classifiying its couriers as self-employed, while the business has also been hit with an employment rights lawsuit from the GMB trade union.’

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The Guardian, 3rd May 2017

Source: www.guardian.co.uk

Investment Trust Companies v Revenue and Customs Comrs – WLR Daily

Posted April 26th, 2017 in appeals, EC law, HM Revenue & Customs, law reports, restitution, Supreme Court, VAT by sally

Investment Trust Companies v Revenue and Customs Comrs [2017] UKSC 29

‘The claimants were “closed-ended” investment funds constituted as limited companies. Between 1992 and 2002 they received supplies of services from investment managers rendered pursuant to agreements which provided for the managers to be remunerated by the payment of fees plus VAT “if applicable”. Under the legislation then in force such services did not qualify for exemption and the managers charged VAT at the standard rate. The managers made periodic VAT returns which accounted for the VAT charged as output tax, reclaimed input tax and paid the revenue the net difference. Following a decision of the Court of Justice of the European Union it transpired that the supplies of the investment management services should have been exempt from VAT. Accordingly, the managers made claims to the revenue under section 80 of the Value Added Tax Act 1994 for repayment of sums accounted for and paid by them in error. The revenue met those claims but, in accordance with the statutory provisions, limited repayments to the net amounts which the managers had paid and did not include any amounts relating to periods which were time-barred. The managers forwarded the reimbursements to the claimants as required under section 80 but since they were insufficient to meet the full amount of VAT which had been mistakenly paid by them the claimants brought proceedings against the revenue on grounds of unjust enrichment and breach of European Union law. The judge found that the revenue had been enriched by the full amount of VAT paid by the claimants to the managers; that the claimants had no cause of action at common law because the statutory scheme protected the revenue from any liability to refund VAT except as provided for under section 80 of the 1994 Act, but that, since, within the limitation period, European Union law required that exclusion to be disapplied, the claimants were entitled to repayment of the full amount of VAT paid by the claimants within that period. The claim in relation to the time-barred periods was therefore dismissed. On appeal by both parties the Court of Appeal concluded that the statutory scheme did not exclude a common law claim but that, since the revenue had only received payment of output tax net of input tax from the managers, it had not been unjustly enriched over the periods in which a refund had been paid to the managers, although a similar repayment was payable to cover the time-barred periods.’

WLR Daily, 11th April 2017

Source: www.iclr.co.uk

No direct right in restitution against HMRC for investment trust companies, rules Supreme Court – OUT-LAW.com

Posted April 25th, 2017 in financial regulation, HM Revenue & Customs, news, restitution by sally

‘A group of investment trust companies (ITCs) cannot make out an ‘unjust enrichment’ claim against HM Revenue and Customs (HMRC) in order to recover VAT paid to their investment managers (managers) due to a mistake of law, the UK’s highest court has ruled.’

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OUT-LAW.com, 25th April 2017

Source: www.out-law.com

Crackdown on ‘disguised self-employment’ behind increased HMRC payroll tax take, says expert – OUT-LAW.com

‘HM Revenue and Customs (HMRC) collected an additional £705 million in tax from investigations into companies’ payroll taxes last year, almost half of which was collected from small or medium-sized businesses (SMEs), according to new figures.’

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OUT-LAW.com, 4th April 2017

Source: www.out-law.com

Commercial landlords may have to police illicit tobacco sales under HMRC proposals – OUT-LAW.com

‘Commercial property landlords could be forced to actively inspect their properties and police tenants suspected of tobacco and other excise duty evasion under plans proposed by HM Revenue and Customs (HMRC), an expert has warned.’

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OUT-LAW.com, 22nd February 2017

Source: www.out-law.com

Tax barrister plans to take Uber to court over alleged £20m black hole – The Guardian

‘A leading tax lawyer is planning to challenge Uber in the courts over what he alleges could be a £20m-a-year black hole in its tax payments in the UK.’

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The Guardian, 21st February 2017

Source: www.guardian.co.uk

Government breached personal data security 9,000 times in a year – The Guardian

‘Personal data security was breached nearly 9,000 times by the government in a year, the National Audit Office (NAO) has found. The watchdog revealed the 17 largest departments recorded 8,995 data breaches in 2014-15 – but that only 14 were reported to the Information Commissioner (ICO).’

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The Guardian, 14th September 2016

Source: www.guardian.co.uk

Hermes may face HMRC investigation into allegations of low pay – The Guardian

‘The government has asked tax inspectors to consider investigating allegations of low pay by self-employed couriers working for the doorstep delivery company Hermes.’

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The Guardian, 11th September 2016

Source: www.guardian.co.uk

‘More than half’ of taxpayer challenges to HMRC decisions successful – OUT-LAW.com

‘More than half of the challenges brought by taxpayers against HM Revenue and Customs (HMRC) decisions last year were successful, according to figures obtained by Pinsent Masons, the law firm behind Out-Law.com.’

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OUT-LAW.com, 23rd August 2016

Source: www.out-law.com

Tax avoidance sanctions proposals “threaten rule of law” – Legal Futures

‘Government proposals to clamp down on tax avoidance by targeting advisers with sanctions if HMRC successfully challenges a scheme further blur the line between evasion and avoidance, and “threaten the rule of law”, according to a prominent tax lawyer.’

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Legal Futures, 18th August 2016

Source: www.legalfutures.co.uk

Harry Potter actor Rupert Grint loses £1m tax refund case – The Guardian

Posted August 10th, 2016 in appeals, HM Revenue & Customs, income tax, news, taxation by tracey

‘Harry Potter star Rupert Grint has lost his legal battle for a £1m tax refund. A tax tribunal judge rejected the actor’s appeal against an HM Revenue and Customs block on him using a change in accounting dates to shield his earnings from the higher 50% tax rate.’

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The Guardian, 9th August 2016

Source: www.guardian.co.uk

Lingerie firm wins court fight over tax on bras for breast cancer patients – Daily Telegraph

‘Lingerie company bosses have won a Supreme Court fight over tax on special bras worn by women who have had a mastectomy.’

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Daily Telegraph, 13th July 2016

Source: www.telegraph.co.uk

Avoid/evade – Counsel

‘Recent news analysis of the Panama Papers, and high-profile-personality stakes in offshore funds, have turned up the heat in the tax avoid v evade debate. Kevin Prosser QC sheds light on this greyest of areas.’

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Counsel, July 2016

Source: www.counselmagazine.co.uk

Landlord sentenced after admitting conspiring to defraud council – Local Government Lawyer

‘A landlord has been sentenced to 17 months in prison suspended for 12 months after she admitted conspiring to defraud a district council.’

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Local Government Lawyer, 17th June 2016

Source: www.localgovernmentlawyer.co.uk

Court of Appeal: SDLT not payable by company using Shari’a finance scheme – OUT-LAW.com

‘Project Blue Limited (PBL) was not liable for stamp duty land tax (SDLT) in respect of its acquisition of the former Chelsea Barracks by means of a Shari’a finance scheme, the Court of Appeal has ruled.’

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OUT-LAW.com, 31st May 2016

Source: www.out-law.com

Pressure builds for investigation into London arms trade fair after judge sees evidence of illegal weapons sales – The Independent

‘Anti-arms trade campaigners have put pressure on the Government to act after officials’ business-as-usual response to a court ruling warning that illegal arms could be changing hands at at London arms fair.’

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The Independent, 16th April 2016

Source: www.independent.co.uk

Bristol man Attila Kovacs admits selling smuggled puppies – BBC News

Posted April 18th, 2016 in community service, dogs, HM Revenue & Customs, news, sentencing by sally

‘A man who admitted selling illegally imported puppies has been given a 200-hour community order.’

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BBC News, 15th April 2016

Source: www.bbc.co.uk

HMRC investigates just 35 wealthy tax evaders per year, report reveals – Daily Telegraph

‘HMRC investigated just 35 wealthy people for tax evasion last year, prompting a committee of MPs to warn the level of action is “woefully inadequate” in the wake of the Panama Papers tax avoidance scandal.’

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Daily Telegraph, 15th April 2016

Source: www.telegraph.co.uk

Hargreaves v Revenue and Customs Commissioners – WLR Daily

Posted March 30th, 2016 in appeals, HM Revenue & Customs, income tax, law reports, taxation by sally

Hargreaves v Revenue and Customs Commissioners [2016] EWCA Civ 174

‘The taxpayer stated on his self-assessment tax return that he was to be regarded as provisionally non-resident and not ordinarily resident in the United Kingdom with effect from a certain date. The revenue issued a discovery assessment against him under section 29 of the Taxes Management Act 1970 on the basis that he was not entitled to be treated as neither resident nor ordinarily resident in the United Kingdom for tax purposes as he had not taken sufficient steps to become non-resident. The taxpayer appealed, first, against the contention that he was not in fact resident or ordinarily resident here, and, second, against the discovery assessment, alleging that it had been made without the revenue having any power to do so and therefore was invalid. He applied for a direction that the second issue be heard as a preliminary issue on the basis that he wanted to be able to elect not to give evidence until the revenue had proved its case on the relevant conditions in section 29(3). The First-tier Tribunal dismissed the application, determining that he had no right to require the revenue to establish at a separate preliminary hearing against the discovery assessment the matters which under section 29 the revenue should establish to show that the discovery assessment was validly made and that while it had a discretion to order a separate preliminary trial, it would not do so. The Upper Tribunal dismissed the taxpayer’s appeal, concluding that the taxpayer did not have any relevant right to a preliminary hearing and that it was possible to have a single hearing even though there were different burdens of proof on the two issues in the present case and that it would need to hear evidence on the issues together.’

WLR Daily, 22nd March 2016

Source: www.iclr.co.uk