We are often asked why the tax situation is taking so long to resolve.
Surely after 15+ years of enquiry somebody, somewhere has managed to find an adviser who has reached agreement with HMRC or some "one size fits all" answer is available to everybody?
Afraid not.
HMRC works very slowly. They are always trying to do more with less and picking priorities is always a mystery as is why they often find a target, launch enquiries and then switch the resources to something else.
Many scheme promoters have either disappeared or have vested interests in not agreeing a final position. Many may not know what that final position is. Many may be unable to work out the final position for various reasons.
Many accountants and advisers who were involved in the initial introduction of schemes many have reason to distance themselves.
There are relatively few advisers from the days when schemes were de rigeur who are still around. These people do not work for free (why should they) but clearly there are trust issues in this space. I suggest also that there are often differences of view here with contractors thinking that such advisers should work toward agreement with HMRC as part of some moral covenant, whereas professional advisers could and should be rewarded for their skill and time.
Advisers such as ourselves are still rare. We have no connection with previous schemes and have tried to reach agreement with HMRC via technical argument based on historical facts. We do so for groups, others do so for individuals.
Despite the fact that some cases have reached Court/Tribunal, there is no universal model that all can follow. Schemes come in generally 4 perhaps 5 flavours. We have decisions in perhaps two, one of which is sub judice.
All of the above combine to slow and drag the system back.
Surely after 15+ years of enquiry somebody, somewhere has managed to find an adviser who has reached agreement with HMRC or some "one size fits all" answer is available to everybody?
Afraid not.
HMRC works very slowly. They are always trying to do more with less and picking priorities is always a mystery as is why they often find a target, launch enquiries and then switch the resources to something else.
Many scheme promoters have either disappeared or have vested interests in not agreeing a final position. Many may not know what that final position is. Many may be unable to work out the final position for various reasons.
Many accountants and advisers who were involved in the initial introduction of schemes many have reason to distance themselves.
There are relatively few advisers from the days when schemes were de rigeur who are still around. These people do not work for free (why should they) but clearly there are trust issues in this space. I suggest also that there are often differences of view here with contractors thinking that such advisers should work toward agreement with HMRC as part of some moral covenant, whereas professional advisers could and should be rewarded for their skill and time.
Advisers such as ourselves are still rare. We have no connection with previous schemes and have tried to reach agreement with HMRC via technical argument based on historical facts. We do so for groups, others do so for individuals.
Despite the fact that some cases have reached Court/Tribunal, there is no universal model that all can follow. Schemes come in generally 4 perhaps 5 flavours. We have decisions in perhaps two, one of which is sub judice.
All of the above combine to slow and drag the system back.
Comment