Government wins alleged tax avoidance case
The UK authorities are today celebrating a potentially massive win in the courts when a judge ruled that retrospective tax legislation regarding offshore tax avoidance schemes was not against the human rights of those involved. The case centred round a self-employed IT contractor who was hit with a £100,000 tax bill by the UK authorities relating to income received through an offshore tax scheme.
Mr Justice Kenneth Parker ruled that the backdating of tax demands by the government, which has the potential to bring in over £100 million in income tax, was legal and fair. It is believed that around 2,500 taxpayers situated in the UK will also be hit with potentially enormous back tax claims by the UK authorities. The schemes in question have been around for some time and the government brought in legislation in the 2008 Finance Act which effectively allows them to backdate tax demands in these particular circumstances.
Despite the fact that many of those now involved in the fight with the government are unable to pay the large tax demands in question it seems unlikely that the UK government will give up the cause. This is just the latest in a long line of taxation-based initiatives by the UK government which have brought in hundreds of millions of pounds of tax which had initially been shielded or exempted from the old tax legislation.
Share this..
Related stories
United Arab Emirates celebrates 38th birthday
What a time for United Arab Emirates to celebrate its 38th year in existence with the Dubai debt crisis creating a large cloud over the area. The behind-the-scenes action continues with regards to Dubai with a general assumption that the Abu Dhabi authorities will step forward to cherry pick the best assets and offer partial assistance to the Dubai government. This is almost certain to happen soon...
Read MoreMPs pay no tax on second home allowance
It has been revealed in the weekend press that MPs in the UK have managed to secure an extension from taxation on the significant benefits they are able to claim from the UK taxpayer. Using a little known law from the 1970s, which was passed by MPs themselves, it has been revealed that MPs do not pay any taxation on expenses received in the line of duty.
This is in direct contrast t...
When did you last review your tax code?
It may surprise many to learn that the vast majority of people in the UK have no idea what their tax code is or how it relates to their situation. The vast majority would not even know where to find a tax code on their payroll slip with even less chance of knowing their relevant allowances. Unless you review your own tax situation there is no way that the Inland Revenue will repay any tax they hav...
Read MoreLocal authorities get tough on late payers
It has been revealed that local authorities throughout the UK, especially in Scotland, are taking a firmer line against those who are later with their council tax payments and other debts. Even though many local authorities around the UK are owed literally tens if not hundreds of millions of pounds in unpaid council tax there is evidence of debt collectors being brought in to chase debts which are...
Read MoreLondon house prices could fall
11/07/2014 House prices in London could be set to fall over the next three months, according to a poll by the Royal Institution of Chartered Surveyors (Rics). The poll found that London surveyors believed house prices were likely to fall in the coming months, with one cause believed to be the recent introduction of tougher mortgage lending rules for borrowers. Rics said that various facto...
Read More