TaxAdministrationHigh Court win for HMRC on offshore scheme

High Court win for HMRC on offshore scheme

IT contractor fails in application for judicial review

The taxman has won a battle High Court after its request for £100,000 of
backdated tax from an IT contractor was challenged with an application for
judicial review.

The High Court rejected the apllication yesterday, according to the
Financial
Times
, saying the backdated demand for the tax did not breach human
rights.

The case relates to contractor Robert Huitson who used a scheme on the Isle
of Man, set up up by Montpelier Tax Consultants, which paid an annual fee for
being the owner of a life interest in an offshore trust.

The FT reported that the court heard that scores of other people had
participated in the scheme and that some faced bankruptcy as a result of claims
for backdated tax from HMRC.

The Professional Contractors Group, a body that represents IT contractors,
said: “We share a common concern with all taxpayer that this judgement may be
seen as opening the door to retrospection.

“For a seven year period up to 2008 HMRC failed to take any action before the
law was changed, despite being well aware of these arrangements. Whilst PCG in
no way encourages off-shore tax arrangements we object in the strongest terms to
taxpayers being retrospectively penalised for arranging their tax affairs in a
way which was entirely legal and proper at the time they undertook to do so.”

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

5d Lucy Skoulding, Reporter
HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

3w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

3w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

3m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter