EBT Loophole to Close
In the March 2010 budget, the government showed its commitment to putting a stop to tax avoidance schemes by 06th April 2011. A press notice, “Protecting Tax Revenues”, which announced attacks on payroll and offshore "schemes" that exploit tax "loopholes “ was released alongside the Budget statement.
The notice from Her Majesty's Treasury reads as follows: "The government is taking further action to change the game for those seeking to bend or break the rules on tax."
According to the notice, the government says it will take action on trusts and "other vehicles", used to reward employees, where remuneration is not taxed correctly.
Anyone currently using or considering using a scheme that promises “a higher net return” should be wary as HMR&C have successfully applied retrospective tax action following the recent BN66 legal battle. This paves the way for similar retrospective action being applied to any other avoidance schemes that HMR&C set their sights on.
For more information on EBT’s please click the link.
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