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Tax avoidance comeuppance!

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Hundreds of celebrities including Sir Alex Ferguson and Sven-Goran Eriksson face huge tax bills after being ordered to repay up to 20 times their investment in an avoidance scheme Football managers a… Read More
Mark2111 Avatar
6m, 1w agoPosted 6 months, 1 week ago
Hundreds of celebrities including Sir Alex Ferguson and Sven-Goran Eriksson face huge tax bills after being ordered to repay up to 20 times their investment in an avoidance scheme
Football managers among the 780 investors spread across 39 partnerships
£2.2b poured into film investment schemes to exploit industry tax breaks
HMRC revealed it will be demanding sums far in excess of those invested
One adviser claimed as many as 700 of the 780 involved could go bankrupt
Mark2111 Avatar
6m, 1w agoPosted 6 months, 1 week ago
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#1
http://i66.tinypic.com/dqog9x.jpg
#2
Hundreds of celebrities could face 'financial ruin' after the taxman ordered them to repay up to 20 times of what they invested in a massive avoidance scheme.
Former Manchester United manager Sir Alex Ferguson and ex-England boss Sven Goran Eriksson are among the 780 investors spread across 39 partnerships.
Businessmen poured £2.2billion into the film investment schemes, with Revenues & Customs informing advisers it would be demanding sums far in excess of those invested.
The scheme enabled investors to avoid paying tax to the government through buying and renting back Hollywood blockbuster movies to film studios.
Nick Wood, an adviser for hundreds of investors in the Eclipse 35 partnership, told The Times: 'I think there will be people potentially jumping off bridges.
'My expectation is, out the 780 people involved, I'd think it highly likely that up to 600-700 would go bankrupt.'
An investor to the scheme who stumped up £200,000, for example, could be expected to pay back somewhere between £2million and £4million.


Revenue & Customs are expected to dish out demands to those involved in the next two months, with recipients given 90 days to pay.
Other big names to invest in the schemes are former England footballer Glenn Hoddle and Sir Peter Davis, who served as chairman of Sainsbury's.
Eclipse 35, one of the 39 partnerships, was deemed a tax avoidance scheme by the Supreme Court back in April.
In order to boost investment in the British film industry, tax breaks were introduced in 1997, leading to £500million investment in UK-based productions by 2000.
However the tax reliefs have been exploited by big money investors who were advised they could shelter their income by pouring money into the industry.
There was no suggestion that the schemes were illegal.
1 Like #3
So?
3 Likes #4
good work HMRC! Labour never pushed for chasing money because they only know how to spend spend spend
3 Likes #5
Knutt
So?


so leave if you aren't interested.
3 Likes #6
Knutt
So?


La
2 Likes #7
Knutt
So?
Mark2111
La

Ti-(Hee)
4 Likes #8
Knutt
So?

A recycled multi ;)
5 Likes #9
fanpages
Knutt
So?
Mark2111
La
Ti-(Hee)

http://syaochan.com/blog/wp-content/uploads/2014/04/wpid-homer-simpson-doh.jpg
4 Likes #10
deeky
fanpages
Knutt
So?
Mark2111
La
Ti-(Hee)
http://syaochan.com/blog/wp-content/uploads/2014/04/wpid-homer-simpson-doh.jpg
http://a66.tinypic.com/2s8ilns.jpg
2 Likes #11
Predikuesi
Knutt
So?
A recycled multi ;)
so many of them in this place, all with one agenda.
4 Likes #12
We know that nobody has done anything illegal, but if this sticks it's hard not to feel just a little

https://31.media.tumblr.com/026bef59e2530d2f496f3c407a5ae333/tumblr_inline_nx6ulzl4sE1tt6p9k_500.gif
#13
Knutt
So?

Gary Barlow?
1 Like #14
deeky
fanpages
Knutt
So?
Mark2111
La
Ti-(Hee)
http://syaochan.com/blog/wp-content/uploads/2014/04/wpid-homer-simpson-doh.jpg

A deer a female deer
1 Like #15
The root of this was HSBC helped in an industrial scale of both avoiding and evading tax (at UK taxpayers expense to the tune of billions at least . £1 billion cheated is effectively £33 tax paid per salaried worker in the UK per year.
.
This was how it all began with HSBC in Switzerland with personal data stolen by an IT database guy back in 2007/8 https://www.theguardian.com/news/2015/nov/27/hsbc-whistleblower-jailed-five-years-herve-falciani
.
The bank involved HSBC https://www.accountancyage.com/aa/news/2394288/hsbc-accused-of-helping-clients-avoid-millions-in-tax
and
https://www.accountancyage.com/aa/news/2396034/hsbc-advised-on-film-schemes-designed-to-avoid-tax
1 Like #16
and there are 1,000 such film schemes that is potential to bust more investors http://www.teeslaw.co.uk/news/news/lhwt-investment-in-british-film-or-a-tax-avoidance-scheme.aspx
#17
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
banned 3 Likes #18
davewave
good work HMRC! Labour never pushed for chasing money because they only know how to spend spend spend


oh God. give your political views a rest !
#19
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
But that is small fry if you compare it with the amounts that Google, Amazon, Facebook, Vodafone et al have 'legally' avoided over the years. The government will happily throw a few sportsmen and celebrities to the lions to protect its paymasters.
#20
RonChew
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
But that is small fry if you compare it with the amounts that Google, Amazon, Facebook, Vodafone et al have 'legally' avoided over the years. The government will happily throw a few sportsmen and celebrities to the lions to protect its paymasters.
That's another story. It has always been controversial whether "we" truly wanted to displace hundreds of thousands of small shops by these giants or displace hundreds of thousands of workers in these small shops into a lesser quantity of employees at Amazon, Google..
#21
RonChew
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
But that is small fry if you compare it with the amounts that Google, Amazon, Facebook, Vodafone et al have 'legally' avoided over the years. The government will happily throw a few sportsmen and celebrities to the lions to protect its paymasters.
As to celebrities point, that's a newspaper technique to sell stories. If you just mention a few of "noboby" names , as in Finanical Times, these names don't sell stories as there is no sensationalism.
.
The total worth to HMRC is alleged to be £5b. Amazon annual sales run at £6.3 billion. So the film tax avoidance is not small fry. It may be small fry to a few celebs names though.
#22
Here is a related story. It is questioned by many as to why £1b of film investment into this country , which has created jobs, has resulted in £5b paid out in tax rebates which destroyed jobs.
https://www.theguardian.com/business/2016/feb/16/rbs-1bn-tax-breaks-film-distribution-harry-potter

Edited By: splender on Nov 19, 2016 22:56
#23
splender
RonChew
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
But that is small fry if you compare it with the amounts that Google, Amazon, Facebook, Vodafone et al have 'legally' avoided over the years. The government will happily throw a few sportsmen and celebrities to the lions to protect its paymasters.
As to celebrities point, that's a newspaper technique to sell stories. If you just mention a few of "noboby" names , as in Finanical Times, these names don't sell stories as there is no sensationalism.
.
The total worth to HMRC is alleged to be £5b. Amazon annual sales run at £6.3 billion. So the film tax avoidance is not small fry. It may be small fry to a few celebs names though.
I don't think that you want to take too much notice of HMRC's estimates. I reckon that I've got about as much chance of winning next week's Euromillions as HMRC have of collecting the figures they tell the press. And I don't even buy lottery tickets. If they collect as much as £1bn, I would be surprised.

And it's not just Amazon who are on the fiddle. They may be one of the biggest but there are hundreds, if not thousands, more using the same sort of tricks.
1 Like #25
RonChew
splender
RonChew
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
But that is small fry if you compare it with the amounts that Google, Amazon, Facebook, Vodafone et al have 'legally' avoided over the years. The government will happily throw a few sportsmen and celebrities to the lions to protect its paymasters.
As to celebrities point, that's a newspaper technique to sell stories. If you just mention a few of "noboby" names , as in Finanical Times, these names don't sell stories as there is no sensationalism.
.
The total worth to HMRC is alleged to be £5b. Amazon annual sales run at £6.3 billion. So the film tax avoidance is not small fry. It may be small fry to a few celebs names though.
I don't think that you want to take too much notice of HMRC's estimates. I reckon that I've got about as much chance of winning next week's Euromillions as HMRC have of collecting the figures they tell the press. And I don't even buy lottery tickets. If they collect as much as £1bn, I would be surprised.
And it's not just Amazon who are on the fiddle. They may be one of the biggest but there are hundreds, if not thousands, more using the same sort of tricks.
How do you know what you had written? How do you know that they consistently underperform?
.
However I have found this:-
In previous cases HMRC has attracted criticism for failing to prosecute wealthy individuals caught evading tax. Hervé Falciani, a former IT worker, leaked details of 130,000 holders of secret accounts with HSBC’s Swiss private bank. He was convicted in his absence for the biggest leak in banking history, and is currently living in France, having fled Switzerland.

HMRC obtained this data in 2010 and appointed a team of more than 300 tax officials to trawl through the evidence. However, this resulted in no prosecutions and led to bitter criticism in January from parliament’s public accounts committee, which said that those accused of wrongdoing had got off “scot-free”.

Edited By: splender on Nov 19, 2016 23:40: added text
#26
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
that made me chuckle, nice try.
#27
Neil Lennon still calling the kettle black :-/
1 Like #28
splender
RonChew
splender
RonChew
splender
According to FT, the estimated amount to be secured is more than £5bn by HMRC, it thinks individuals have deprived the public purse of through abusive arrangements concocted a decade or more ago. The 60,000 or so investors targeted by HMRC should of course repay tax where their schemes were bogus.
This thing is huge, much greater than an act of Terrorism, many many times over.
But that is small fry if you compare it with the amounts that Google, Amazon, Facebook, Vodafone et al have 'legally' avoided over the years. The government will happily throw a few sportsmen and celebrities to the lions to protect its paymasters.
As to celebrities point, that's a newspaper technique to sell stories. If you just mention a few of "noboby" names , as in Finanical Times, these names don't sell stories as there is no sensationalism.
.
The total worth to HMRC is alleged to be £5b. Amazon annual sales run at £6.3 billion. So the film tax avoidance is not small fry. It may be small fry to a few celebs names though.
I don't think that you want to take too much notice of HMRC's estimates. I reckon that I've got about as much chance of winning next week's Euromillions as HMRC have of collecting the figures they tell the press. And I don't even buy lottery tickets. If they collect as much as £1bn, I would be surprised.
And it's not just Amazon who are on the fiddle. They may be one of the biggest but there are hundreds, if not thousands, more using the same sort of tricks.
How do you know what you had written? How do you know that they consistently underperform?
.
However I have found this:-
In previous cases HMRC has attracted criticism for failing to prosecute wealthy individuals caught evading tax. Hervé Falciani, a former IT worker, leaked details of 130,000 holders of secret accounts with HSBC’s Swiss private bank. He was convicted in his absence for the biggest leak in banking history, and is currently living in France, having fled Switzerland.
HMRC obtained this data in 2010 and appointed a team of more than 300 tax officials to trawl through the evidence. However, this resulted in no prosecutions and led to bitter criticism in January from parliament’s public accounts committee, which said that those accused of wrongdoing had got off “scot-free”.
The best independent source of information about HMRC is Private Eye which seems to have always had a close relationship with insiders to the extent that a former tax inspector, Richard Brooks, works for the Eye.

The problem with prosecutions is that it is far more difficult to prove criminality in tax evasion fraud (e.g. the Ken Dodd prosecution) than it is the simple fraud in overclaiming benefits. So, HMRC is far more likely to prosecute someone who has overclaimed their tax credits by, say, making a false declaration about the number of children they have than they are to try to prove that a tax evader's real income was more than they declared on their tax return.

And when you get into the complexities of the borderline between evasion and avoidance, some of which is of dubious legality (Eclipse 35?), the waters become far more muddied. Do you think that what the Eclipse 35 users did was fraud?
#29
WheresMeNuts
Neil Lennon still calling the kettle black :-/
How long have you been obsessing about Lennon? Have you sought medical help?
2 Likes #30
The issue is that no one wants to pay more tax than they have to. There's loads of ways to 'avoid' tax from pensions to isas that don't have people crying 'scum'. Make a clearer, less complex tax system that doesn't deal in what's 'morally' right and wrong.
#31
RonChew
Do you think that what the Eclipse 35 users did was fraud?
Clearly it is civil and not criminal.
#32
RonChew
WheresMeNuts
Neil Lennon still calling the kettle black :-/
How long have you been obsessing about Lennon? Have you sought medical help?
Not as long as you've been obsessed by me wee guy. get over me FFS !!
#33
splender
RonChew
Do you think that what the Eclipse 35 users did was fraud?
Clearly it is civil and not criminal.
Why do you say that?
#34
RonChew
splender
RonChew
Do you think that what the Eclipse 35 users did was fraud?
Clearly it is civil and not criminal.
Why do you say that?
The court process this case went through.
#35
splender
RonChew
splender
RonChew
Do you think that what the Eclipse 35 users did was fraud?
Clearly it is civil and not criminal.
Why do you say that?
The court process this case went through.
You're perhaps confusing separate things then. The civil case was whether, on the basis of the facts, the scheme that these people participated in was legal. Broadly, the result of the case was that the courts regarded it as a sham.

So, the question is whether the participants could have suspected that the scheme was a sham and should not have attempted to get tax relief on the payments they claimed to have made. They almost certainly would have known of the possibility that the set-up wouldn't work because most, if not all, these types of scheme are sold with caveats from the scheme creators. Looked at from this angle, do you think that they have committed fraud?
#36
WheresMeNuts
RonChew
WheresMeNuts
Neil Lennon still calling the kettle black :-/
How long have you been obsessing about Lennon? Have you sought medical help?
Not as long as you've been obsessed by me wee guy. get over me FFS !!
Lennon resigned as manager of Scotland's best football team 2 and a half years ago and you randomly bring his name up in a tax avoidance thread? Now I could understand you disliking him if he was still manager of Celtic but this seems to go a bit deeper. Is it a religious thing?
#37
RonChew
WheresMeNuts
RonChew
WheresMeNuts
Neil Lennon still calling the kettle black :-/
How long have you been obsessing about Lennon? Have you sought medical help?
Not as long as you've been obsessed by me wee guy. get over me FFS !!
Lennon resigned as manager of Scotland's best football team 2 and a half years ago and you randomly bring his name up in a tax avoidance thread? Now I could understand you disliking him if he was still manager of Celtic but this seems to go a bit deeper. Is it a religious thing?
Is that a bait post from you lolzzzz.

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