The LC and Open Years

[stonehenge]

HMRC have had enquiries open into loan schemes for nearly 20 years. What have they done in all that time? SFA, that's what.

Some here have suggested that, even if people pay the LC, HMRC will doggedly continue to pursue open years.

Seriously? The whole point of the LC is so they can sweep this whole sorry mess away. The idea that, after collecting the LC, they're going to expend a ton of energy chasing open years is a joke.

That's my opinion. What's yours?

[regron]

HMRC have had enquiries open into loan schemes for nearly 20 years. What have they done in all that time? SFA, that's what.

Some here have suggested that, even if people pay the LC, HMRC will doggedly continue to pursue open years.

Seriously? The whole point of the LC is so they can sweep this whole sorry mess away. The idea that, after collecting the LC, they're going to expend a ton of energy chasing open years is a joke.

That's my opinion. What's yours?

Whilst it would possibly not make sense for HMRC to continue to throw resource and money at chasing open years for additional revenue, they will do exactly that.. remember.... 'Max Revenue' is part of their own Mantra. Therefore I full expect this to happen. The scary thing is, it will probably be a scaled back team who's sole job is to do this, therefore it may be another 1,2,5 10+ years until that happens. Also, the fact that you an I will required funds to fight them, is more proof that they will come after open years as they have the deep pockets to make if difficult for us. I cannot think of one solid, valid reason why they would just give them up, not One !

[Iter]

Also if they evaluate that the settlement is a higher liability than what you may have paid on the LC they will prob come for the difference. A lot has already been discussed around this on other threads

[stonehenge]

Officially, they will never give up the open years.

Unofficially, watch that dust gathering.

[Tiger22]

Force HMRC to close the year

The thing is you don't have to wait for HMRC to get around to dealing with your open year. The ball is not wholly in their court. You can request them to close the year because they are taking too long. They then have to make a call on what to do. If everyone requested closure at once they couldn't cope and would probably have to concede and close years rather than invest the resources to try and fight for something where they've already had a decent pound of flesh from you via the LC.

[webberg]

As I suspect it is my view that is being subjected to the poll here, I will make a final contribution and then ignore this thread.

HMRC has no ability to walk away from an enquiry that has not been closed.

If they close the enquiry with no adjustment, it means that the loan charge cannot apply.

Therefore they have to close that enquiry, with the required tax adjustment and then deal with the interaction between open year and loan charge.

This is what the law requires. It is what HMRC have said in their statements around loan charge and contractor avoidance.

This is my view and the view of all those professionals I have discussed this with.

I may of course be wrong but I without a change of law I cannot see any other means for HMRC to not continue the enquiry.

[stonehenge]

HMRC has no ability to walk away from an enquiry that has not been closed.

No, but they can leave it gathering dust on the shelf indefinitely. There is no statutory time limit for closing them.

I've read of many enquiries, opened in the 1990s, that are still open.

Try submitting an FOI request. No doubt they'll come up with an excuse, for not complying, because the data will be shocking.

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Dear HMRC,

Please supply the following.

1) the current total number of open enquiries

2) the figure in (1) broken down by the year, in which the enquiries were opened, from 1990 to 2019

[dammit chloe]

No, but they can leave it gathering dust on the shelf indefinitely. There is no statutory time limit for closing them.

I've read of many enquiries, opened in the 1990s, that are still open.

Try submitting an FOI request. No doubt they'll come up with an excuse, for not complying, because the data will be shocking.

--------------------

Dear HMRC,

Please supply the following.

1) the current total number of open enquiries

2) the figure in (1) broken down by the year, in which the enquiries were opened, from 1990 to 2019

From what I have read courts are now starting to count enquiries as being stale if they had just been left for years without anyone progressing them.