Apr. 19 2023
Source Page: Immigration Rules archive: 30 January 2023 to 11 April 2023Found: 'Invested’ or ‘spent' excludes spending on: (1) the applicant’s own remuneration, (2) buying
Asked by: Theresa Villiers (Conservative - Chipping Barnet)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, with reference to the conclusions of the Morse Review, for what reason HMRC are pursuing people for pre-2010 tax years, in relation to Loan Charge legislation.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
In the 2019 Independent Loan Charge Review, Lord Morse recommended that the Loan Charge should only apply to loans made on or after 9 December 2010.
However, he was also clear that, for years before this date, where there is an open enquiry or assessment under appeal, HM Revenue and Customs (HMRC) should continue with enquiries and settling cases under their normal powers.
HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of disguised remuneration (DR) loans, in accordance with their published DR settlement terms and HMRC Litigation and Settlement Strategy.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 7 March to Question 157046 on Tax Avoidance, how many of those taxpayers have been contacted by HMRC about those checks in the last (a) 12 weeks and (b) 12 months.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HM Revenue and Customs (HMRC) currently has around 15,000 open compliance checks relating to a number of individual taxpayers who used Disguised Remuneration (DR) tax avoidance schemes before 9 December 2010, and which are not subject to the Loan Charge following recommendations made by the Independent Loan Charge Review. These compliance checks will include both open enquiries and assessments, and taxpayers can be subject to more than one compliance check at one time.
As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HM Revenue & Customs in the last 12 months.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 2 March to Question 157046 on Tax Avoidance and the Answer of 1 March to Question 152309, how many individuals are subject to open compliance checks relating to disguised remuneration schemes used before 9 December 2010.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HM Revenue and Customs (HMRC) currently has around 15,000 open compliance checks relating to a number of individual taxpayers who used Disguised Remuneration (DR) tax avoidance schemes before 9 December 2010, and which are not subject to the Loan Charge following recommendations made by the Independent Loan Charge Review. These compliance checks will include both open enquiries and assessments, and taxpayers can be subject to more than one compliance check at one time.
As part of its overall compliance processes and its commitment to update taxpayers at least annually, all of these taxpayers should have received correspondence from HM Revenue & Customs in the last 12 months.
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, pursuant to the Answer of 23 February 2023 to Question 147156 on Tax Avoidance: how many (a) open enquiries and (b) active assessments relating to disguised remuneration schemes used before 9 December 2010 are outstanding.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HM Revenue and Customs currently has around 15,000 open compliance checks in respect of individual taxpayers who used DR tax avoidance schemes before 9 December 2010, and which are not subject to the Loan charge following recommendations made by the Independent Loan Charge Review. These compliance checks will include both open enquiries and assessments. An individual may have more than one compliance check depending on their scheme usage and whether it spans more than one tax year.
Taxpayers who wish to settle, whether or not the loan charge applies, can do so under the DR settlement terms 2020 which are published on GOV.UK. Taxpayers who do not wish to settle the tax due in respect of their DR scheme use under the published terms have the option of taking their cases before the tribunals and courts.
Feb. 28 2023
Source Page: Immigration Rules archive: 30 November 2022 to 29 January 2023Found: 'Invested’ or ‘spent' excludes spending on: (1) the applicant’s own remuneration, (2) buying
Asked by: Daisy Cooper (Liberal Democrat - St Albans)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether HMRC pursues unpaid tax receipts from disguised remuneration schemes operated before 9 December 2010.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
HMRC have open enquiries and assessments into disguised remuneration (DR) use before 9 Dec 2010. These will need to be resolved by way of settlement with HMRC or through litigation.
The Independent Loan Charge Review was clear that HMRC should continue with enquiries and settling cases under their normal powers, including where loans now fall outside the scope of the Loan Charge.
HMRC continues to work with and support taxpayers to resolve all outstanding enquiries and assessments relating to their use of DR loans, in accordance with their published DR settlement terms and HMRC Litigation and Settlement Strategy.
Asked by: Dave Doogan (Scottish National Party - Angus)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the amount that will be raised by the Loan Charge.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Loan Charge was introduced to draw a line under the historic use of disguised remuneration (DR) schemes which paid income in the form of loans via third parties, often offshore trusts.
When announced at Budget 2016, the Loan Charge formed part of a package estimated to yield more than £3.2 billion over five years. The forecast was last revised at Spring Statement 2022, with the latest estimated overall Exchequer yield of £3.4 billion for the entire package, which includes the Loan Charge.
There has already been an independent review of the Loan Charge. The Independent Loan Charge Review, led by Lord Morse, assessed the impact of the policy on affected taxpayers. The Government accepted all but one of the Review’s 20 recommendations and changes resulting from the review have reduced the Exchequer yield by an estimated £620 million.
Any loss of life is a tragedy, and HMRC takes issues relating to loss of life or serious injury extremely seriously. HMRC has made ten referrals to the Independent Office for Police Conduct (IOPC) in relation to individuals who have sadly taken their lives and have used DR schemes. In the eight concluded cases, the investigations found no evidence of misconduct by any HMRC officer. Individuals affected by the Loan Charge are supported by HMRC’s Extra Support teams. These are teams of specialist trained advisors who, where appropriate, signpost taxpayers to specialist Voluntary and Community organisations. To further strengthen the support offered to taxpayers, HMRC and Samaritans are currently working together to deliver an 18-month project.
Asked by: Dave Doogan (Scottish National Party - Angus)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will conduct a review of the potential effect of the Loan Charge on instances of the suicides in the UK.
Answered by Victoria Atkins - Secretary of State for Health and Social Care
The Loan Charge was introduced to draw a line under the historic use of disguised remuneration (DR) schemes which paid income in the form of loans via third parties, often offshore trusts.
When announced at Budget 2016, the Loan Charge formed part of a package estimated to yield more than £3.2 billion over five years. The forecast was last revised at Spring Statement 2022, with the latest estimated overall Exchequer yield of £3.4 billion for the entire package, which includes the Loan Charge.
There has already been an independent review of the Loan Charge. The Independent Loan Charge Review, led by Lord Morse, assessed the impact of the policy on affected taxpayers. The Government accepted all but one of the Review’s 20 recommendations and changes resulting from the review have reduced the Exchequer yield by an estimated £620 million.
Any loss of life is a tragedy, and HMRC takes issues relating to loss of life or serious injury extremely seriously. HMRC has made ten referrals to the Independent Office for Police Conduct (IOPC) in relation to individuals who have sadly taken their lives and have used DR schemes. In the eight concluded cases, the investigations found no evidence of misconduct by any HMRC officer. Individuals affected by the Loan Charge are supported by HMRC’s Extra Support teams. These are teams of specialist trained advisors who, where appropriate, signpost taxpayers to specialist Voluntary and Community organisations. To further strengthen the support offered to taxpayers, HMRC and Samaritans are currently working together to deliver an 18-month project.
Written Evidence Jan. 26 2023
Inquiry: Managing tax compliance following the pandemicFound: In addition, there still appear to be a consistent number of businesses promoting disguised remuneration