Tax Dodgers Face Huge Bill For OffShore Bank Accounts
The supreme court has defended the right of HM Income & Customs to find £100m in earnings taxes from 2,500 users of an offshore tax avoidance scheme. A self employed IT advisor, Robert Huitson, had challenged the Income’s right to levy taxes retrospectively. He had evaded £85,000 of tax over 7 years through a difficult tax arrangement based in the Isle of Man. Mr Justice Parker defended the 2008 Finance Act which let the Income plug the loophole retrospectively. ‘Every taxpayer’s dream’ Mr Huitson’s barrister declared this broke his rights under the Human Rights Act of 2008. He disagreed that till 2008, Mr Huitson’s tax affairs had been legal, and this was shown by the proven fact that the Income had didn’t take any action against them before the law was modified, notwithstanding being well informed of them. Mr Justice Parker refused this.
He clarified the Revenue had warned the users of the tax avoidance scheme that it may be challenged, and he announced the govt.
was entitled to change tax law retrospectively to flatten synthetic agreements. “The tax avoidance scheme, if it worked, would , seem to realize each taxpayer’s dream about lawfully avoiding, or at least significantly reducing, tax in any jurisdiction,” he announced. “It is also straight away plain the tax avoidance scheme, if it worked, would be particularly engaging to any person in the position of the complainant, that is, any resident of the United Kingdom who, as a self employed person, carried on a trade or profession here,” the judge added. The barristers for Mr Huitson claimed they planned to appeal.