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Why is it taking so long?

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    Why is it taking so long?

    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.
    Best Forum Adviser & Forum Personality of the Year 2018.

    (No, me neither).

    #2
    Certainly seems like nothing is happening at HMRC with regards to settlement.

    I've not been able to get a response out of them since July, when they sent me a CLSO2 offer that was incorrect and to which I have raised queries several times by email and recorded post. No response at all, aside from the automated receipts.

    I suppose HMRC, like everyone else, are awaiting the SAM report before they decide how we can proceed.

    In the meantime they can sit back and try to collect the fictional and huge tax via the Jan 31st SA deadline. We all know how that's going to work out for them.

    Comment


      #3
      Originally posted by ChimpMaster View Post
      Certainly seems like nothing is happening at HMRC with regards to settlement.

      I've not been able to get a response out of them since July, .
      There is a difference between reaching agreement as to the actual liability and dealing with the various side roads that have arisen over the years.

      Agreement is you and HMRC agreeing the final liability. That can be by agreement or imposed by a Judge.

      Everything else in this space is an interim measure designed to accelerate money flows (APN) or frustrate justice and the system of taxpayer protections (loan charge) or apply a liability that is unsupported in law or Court (settlement). I count these are largely obstacles to agreeing the final position.

      What is more, obstacles that absorb time, confuse people and allow HMRC convenient hiding places.
      Best Forum Adviser & Forum Personality of the Year 2018.

      (No, me neither).

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