Taxman stops presses on newspaper tax avoidance scheme

by Calum Fuller

More from this author

15 Nov 2012

  • Comments
hmrc-2

A NEWSPAPER-BASED tax avoidance scheme worth £5.6m has been blocked in a tribunal by HM Revenue & Customs, clawing back £104m for the public purse through similar cases.

The scheme functioned by licencing newspaper mastheads to avoid tax, but the tribunal ruled subsidiaries of Iliffe News and Media were not entitled to tax deductions on payments made to its parent company for their use.

Between 2003 and 2005, various trading subsidiaries of Iliffe assigned the mastheads to the parent company and then licensed them back for a fixed term in return for a lump sum payment.

HMRC said the legislation was changed in 2005 in order to scupper schemes such as Iliffe's.

Jim Harra, HMRC director-general for business tax, said: "This is an important ruling against a marketed avoidance scheme and the latest in a series of successful HMRC challenges to such schemes. We will continue to challenge artificial arrangements such as this in the interests of the vast majority of businesses and people who choose to play by the rules."

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.