HMRC Cracks Down on Tax Avoidance Schemes with Stop Notices
In a significant move to clamp down on tax avoidance, HM Revenue & Customs (HMRC) has issued two stop notices to Baxendale-Walker, a notorious promoter of tax avoidance schemes. The notices, numbered 49 and 50, target two specific arrangements that utilise remuneration trusts and offshore trusts, respectively. According to Accountancy Daily, the schemes have been deemed aggressive and are being shut down by the tax authority.
The first scheme, which has been assigned stop notice 49, involves the use of remuneration trusts. These trusts are often used to avoid tax by allowing individuals to receive income in a tax-free manner. However, HMRC has deemed this arrangement to be a tax avoidance scheme and has ordered Baxendale-Walker to cease promoting it immediately. As Accountancy Daily reports, the second scheme, assigned stop notice 50, is an offshore trust arrangement. This scheme involves setting up an offshore trust and then transferring funds through third parties back to the scheme user. The user then claims that the funds received in this way are held in a fiduciary capacity.
The move by HMRC to issue stop notices to Baxendale-Walker follows a number of recent tribunal cases where users of these schemes have lost their appeals. Both individuals and partnerships have been unsuccessful in their attempts to defend the use of these tax avoidance arrangements. As noted by Accountancy Daily, “a number of users of these schemes have lost their appeals at various tribunals recently, including individuals and partnerships.”
According to HMRC, the use of offshore trusts and remuneration trusts is a clear indication of a tax avoidance scheme. The tax authority has been working tirelessly to identify and shut down such schemes, which are often used by individuals and businesses to avoid paying their fair share of tax. As HMRC continues to crack down on tax avoidance, it is clear that promoters of such schemes, like Baxendale-Walker, will face increasing scrutiny.
The issue of stop notices to Baxendale-Walker is a significant development in the ongoing battle against tax avoidance. As Accountancy Daily reports, the notices “order Baxendale-Walker to cease promoting two tax avoidance arrangements.” This move sends a clear message to promoters of tax avoidance schemes that HMRC will not tolerate such aggressive tax planning.
In conclusion, HMRC’s decision to issue stop notices to Baxendale-Walker is a clear indication of its commitment to tackling tax avoidance. The use of remuneration trusts and offshore trusts as tax avoidance schemes is a significant concern for the tax authority, and it will continue to work to shut down such arrangements. As Accountancy Daily notes, “HMRC has issued a brace of stop notices to Baxendale-Walker ordering him to cease promoting two tax avoidance arrangements.” This move is just the latest in a series of actions taken by HMRC to prevent tax avoidance and ensure that individuals and businesses pay their fair share of tax.
The move by HMRC has been welcomed by many in the tax industry, who have long called for greater action to be taken against tax avoidance schemes. As the tax authority continues to crack down on such schemes, it is likely that we will see further action taken against promoters of tax avoidance arrangements. With its latest move, HMRC has made it clear that it will not tolerate tax avoidance and will take all necessary steps to ensure that the tax system is fair and equitable for all.
Source: Accountancy Daily – Baxendale-Walker given stop notices for tax avoidance schemes.
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