Tag Archives: HM Government

The victory over scheme promoter, Root2, came after they failed to report a mass-marketed tax avoidance scheme, known as Alchemy, to the tax authority.

The scheme aimed to extract profits from owner-managed companies in the form of winnings from betting on the stock market, which the scheme aimed to ensure would be tax free, rather than in the form of taxable employment income.

HMRC brought the case against Root2 under the Disclosure of Tax Avoidance Scheme (DOTAS) rules, which requires promoters to tell HMRC about tax avoidance schemes they design and sell.

The First-tier Tribunal agreed with HMRC that the promoter did not abide by the DOTAS rules.

Penny Ciniewicz, Director General of HMRC’s Customer Compliance Group, said:

This is a great victory that sends a clear message to tax avoidance scheme promoters that we will pursue you if you don’t play by the rules.

Most tax avoidance schemes don’t work. The DOTAS rules ensure that HMRC is notified of schemes so that we can investigate and challenge them.

Designers and promoters of avoidance schemes should come forward now if they haven’t already disclosed a scheme to us. We will take action and nobody should think they can get away with not disclosing their avoidance schemes and misleading users about the need to report them.

HMRC will seek to impose a substantial penalty on the promoter for failure to disclose the scheme.

• There is no right of appeal against the Tribunal decision.
• HMRC does not approve tax avoidance schemes. Under DOTAS, promoters must notify HMRC of schemes that contain various hallmarks of tax avoidance. If a scheme has been notified under DOTAS, it does not in any way signify that it has been approved by HMRC.
• HMRC regularly investigates tax avoidance schemes and where it finds rules have been broken, will always take action.
• DOTAS was introduced in 2004 and has been strengthened and broadened since its introduction to keep pace with the ever-changing avoidance landscape.
• DOTAS covers tax avoidance involving: Income Tax, Capital Gains Tax, Corporation Tax, National Insurance contributions, Stamp Duty Land Tax, Inheritance Tax and the Annual Tax on Enveloped Dwellings.
• DOTAS relies on ‘hallmarks’ to describe what has to be disclosed, not on whether something fits a description of ‘avoidance’. HMRC keeps these ‘hallmarks’ under review and has updated and strengthened them regularly since DOTAS was introduced.
• DOTAS is a self-assessment regime – the promoter must consider the scheme it is developing and disclose it to HMRC if it meets any of the hallmarks.
• How DOTAS works:
  • Promoter discloses scheme to HMRC
  • A Scheme Reference Number (SRN) is issued by HMRC which the promoter must provide to users.
  • Promoters must report details of their users to HMRC on quarterly client lists.
  • Users must report their use of a scheme to HMRC annually.
  • HMRC have various information powers to tackle non-compliance with the regime and promoters face penalties of up to £1m or more if they fail to disclose a scheme.
  • Disclosure under DOTAS is one of the three triggers to enable HMRC to issue a notice to a taxpayer under the 2014 Accelerated Payments regime.
• DOTAS guidance can be found here
• Audio version of statement can be found here
• A picture of Penny Ciniewicz can be found here

Adrian Hallchurch Tel: 03000 585 020 Email: Adrian.hallchurch@hmrc.gsi.gov.uk

Out of hours Tel: 07860 359544

read more

Joint statement from Prime Minister Theresa May, Chancellor Angela Merkel and President Emmanuel Macron following President Trump’s statement on the US’ Iran Strategy.

read more

The Foreign Secretary will visit Moscow towards the end of the year following an invitation from Russian Foreign Minister Lavrov, as the UK continues its robust engagement with Russia.

Boris Johnson and Sergei Lavrov last met at the UN General Assembly in September, and now is an important time for both countries to be talking about international security. As permanent members of the UN Security Council, shared concerns include reducing the risk from North Korea’s nuclear and missile programmes.

The visit will be an important opportunity to cover the Iran nuclear deal and other issues of shared interest, including regional stability in the Middle East, and containing threats to international peace. It will also enable us to discuss security co-operation ahead of next summer’s World Cup, on which the UK and Russia are constructively working together.

The UK has deep differences with Russia, in particular over Syria and Ukraine, including the Russian Government’s illegal annexation of Crimea. That’s why we cannot return to ‘business as usual’ but it is vital to continue dialogue on matters of UK national interest.

The visit comes as part of the UK’s sustained, robust engagement with the Russian government. The Prime Minister also made it clear to President Putin at the G20 that it is in both sides’ interests to continue these channels of communication.

The Foreign Secretary Boris Johnson said:

Russia is a fellow permanent member of the UN Security Council and there are global security issues we need to discuss from Iran to North Korea. Of course we will continue to challenge Russia’s approach where we disagree, whether that is Russia’s actions in Syria or its aggression towards Ukraine. My visit will provide an opportunity to talk about these issues and more, face-to-face.

Our relationship with Russia is not straightforward. That is all the more reason to be talking to Russia – to manage our differences and co-operate where possible for the security of both our nations and the international community.

I am looking forward to visiting Moscow, to engaging with the Russian government and a wider range of Russian people including civil society and the all important next generation.

read more

A former dentist who was struck off for dishonesty and poor clinical care and who was also bankrupt, together with a bankrupt GP from Harrow, have been disqualified from acting as directors after making false representations to a financial institution in their application for funding totalling £1.3 million.

The pair alleged they intended to use the funding for the purchase of shares in Weymouth Medical Ltd, a dental training company, with Jagdev Wasu acting as company director despite his bankruptcy order barring him from doing so legally. Following the collapse of Weymouth Medical Ltd, the bank was left with a shortfall of over £650,000.

Jagdev Wasu acted as a director of Weymouth whilst prohibited from doing so, having been declared bankrupt on 18 October 2013.

Commenting on the disqualification, Robert Clarke, Investigations Group Leader at the Insolvency Service said:

Company directors should be under no illusion that it is a serious offence for a person to act as company director whilst undischarged from bankruptcy.

In this case, the breach was exacerbated by providing false information to secure funding for the company, the failure to disclose the true position, causing substantial monetary loss.

The Secretary of State for Business, Energy and Industrial Strategy accepted undertakings from Jagdev Wasu and Paramit Wasu that they would each not act as directors for 11 years on 16 August 2017. The disqualifications came into effect on 6 September 2017.

Notes to editors

Weymouth (CRN 09092402) was placed into Administration on 17 September 2015 with a deficiency as regards creditors of £497,036.

The company, which was incorporated on 19 June 2014, traded as a holding company for a medical centre and dental training company. Weymouth’s registered office was 97 Windsor Road, Gerrards Cross, Buckinghamshire, SL9 7NW.

Jagdev Wasu’s date of birth is November 1975. Paramit Wasu’s date of birth is March 1948.

A disqualification order has the effect that without specific permission of a court, a person with a disqualification cannot:

• act as a director of a company
• take part, directly or indirectly, in the promotion, formation or management of a company or limited liability partnership
• be a receiver of a company’s property

Disqualification undertakings are the administrative equivalent of a disqualification order but do not involve court proceedings. Persons subject to a disqualification order are bound by a range of other restrictions.

The Insolvency Service, an executive agency sponsored by the Department for Business, Energy and Industrial Strategy (BEIS), administers the insolvency regime, and aims to deliver and promote a range of investigation and enforcement activities both civil and criminal in nature, to support fair and open markets. We do this by effectively enforcing the statutory company and insolvency regimes, maintaining public confidence in those regimes and reducing the harm caused to victims of fraudulent activity and to the business community, including dealing with the disqualification of directors in corporate failures.

Contact Press Office

You can also follow the Insolvency Service on:

read more

Ministers have revealed the Scottish Government will receive more than £3.6 billion over five years from 2019/20 – an increase of £600 million on the previous period.

Alongside this, the Scottish Government is also being given greater control over how its rail is funded. So it can choose how best to use this money to improve the reliability of services for passengers, fund upgrades and invest in faster and more comfortable trains.

This new funding settlement is on top of the significant additional Barnett funding the Scottish Government now receives to spend on its priorities, including transport. The Scottish Government has been allocated £1.2 billion since Autumn Statement 2016 and will also get Barnett Formula funding following the UK’s investment in HS2. The Scottish Government will decide how much of this Barnett funding should be spent on the Scottish railway network.

Chief Secretary to the Treasury Elizabeth Truss said:

This multi-billion pound UK government funding is a prime example of how Scotland benefits from the UK’s broad shoulders.

Our record investment for railways across the UK means a settlement for Scotland that could improve the entire network.

We are backing Scotland for its future success and it’s now up to the Scottish Government to ensure maximum benefit for the public.

As a result of UK government decisions in other areas, Scotland has benefited from an additional £2 billion funding since the 2015 Spending Review.

Through the Scotland Act, the Scottish Parliament now has the ability to set devolved taxes in Scotland, making it one of the most powerful devolved Parliaments in the world.

Scotland also benefits from the strength of the UK economy, which was the second fastest growing major advanced economy last year.

Other recent UK government commitments for Scotland:

• the UK government has invested almost £1 billion in Scottish City Deals and we’re planning further deals for Stirling, the Borderlands and the Tay Cities
• Scotland will benefit from the UK government’s investment in areas that are key to boosting productivity, such as research and development, science and innovation
• the National Productivity Investment Fund will invest an extra £23 billion across the UK between 2016/17 and 2021/22

read more