Tag Archives: shambles

More on HMRC’s latest APN mass withdrawal

IMG_20160507_200809From Tax Journal:

“(…) One of the grounds of challenge was that condition C (in FA 2014 s 219(4)) was not met. Condition C is that, amongst other things, the chosen arrangements are ‘DOTAS arrangements’. Section 219(5) defines DOTAS arrangements as meaning ‘notifiable arrangements’ which have been allocated a scheme reference number. In other words, the arrangements must be notifiable under the DOTAS regime, as a matter of law. The fact that the arrangements were notified to HMRC is irrelevant for the purposes of ascertaining whether condition C has been satisfied.
HMRC took some six months to consider this ground of challenge before finally accepting that the arrangements were not notifiable under the DOTAS regime and that the APNs would therefore be withdrawn (…)
HMRC may have to accept this ground of challenge in relation to other similar EBT arrangements as it is obliged to be consistent in its approach and to treat all taxpayers in a similar position in the same way. “

HMRC forced to withdraw more contractor APNs following Judicial Review


After Montpellier last December, more unlawful APNs are being withdrawn following challenge by the taxpayer. This time it is for the Premier Strategies structure

From the FT :

May 27, 2016 5:43 pm

HMRC backs down on upfront payment of disputed tax

“A legal challenge has forced HM Revenue & Customs to back down over hundreds of tax demands issued to users of offshore trusts.

HMRC’s decision to withdraw demands to produce cash up front — known as “accelerated payment notices” — followed the launch of judicial review proceedings by scheme users who argued they should be exempt. (…)
 Adam Craggs, partner at RPC, a law firm that brought the challenge, accused HMRC of taking a “shoot first and ask questions later” approach to the notices. He said they had a potentially serious impact on taxpayers including the risk of “being made bankrupt or being forced to conduct a fire sale of their home or other assets in order to raise sufficient funds”.
The move is the second time HMRC has been forced to withdraw accelerated payment notices. In January, up to 2,000 individuals who used employment tax schemes promoted by Montpelier Tax Consultants, an Isle of Man-based firm, won a reprieve.”

Dotas Scandal are fully expecting a sorry for the inconvenience note to be sent by HMRC to those who were forced into fire sales of their family homes and to the families of those who just couldn’t cope with the bullying anymore.

We are on record maintaining for 2 years+ that the basis of operation of the APN regime would be “issue APNs to everyone and their dog, and count on taxpayers not having the know-how and funding (especially AFTER they have been forced to pay) to challenge the lawfulness of the demands”.

That’s terminal machiavellianism, directly in contravention of HMRC’s charter mandating fairness to all (NOT “unfairness to all”), and in striking contradiction with the reassurances given to the Treasury Select Committee: “HMRC will only seek accelerated payment in cases where there has already been a tribunal decision in their favour” (Lin Homer 09/07/2014)

How long will HMRC be allowed to continue?

FT: “Taxpayers hit with ‘spectacularly wrong’ avoidance bills”


“Imagine my shock when the APN was more than five times more than I thought it would be”.  “I thought I was going crazy.”  After weeks of going back and forth with the Revenue, the authority has acknowledged the mistake and promised to reissue the payment notice. “One has to wonder if this was a deliberate mistake on their part.”
This experience has been relatively common, said Michael Avient, personal tax partner at UHY Hacker Young. “Great care needs to be taken [by taxpayers] to make sure that the amounts are calculated correctly.” Mr Avient added, however, that it was inevitable that errors would occur given the volume of payment notices that HMRC is issuing.
The taxpayer described the process as a source of “acute stress”, adding that the tax bill arrived before his disputed arrangement has gone before the courts. “I really don’t have tens of thousands in spare cash to pay a bill I don’t even owe.”
“Law abiding citizens like myself who invested in schemes which were totally lawful, and in many cases actually promoted by the government, are being treated worse than common criminals,” he said. “It’s totally scandalous.”

Read the full article here (free registration required).

If you have received an APN with a completely wrong amount, or an APN for a year that HMRC is not entitled to, please contact us