Overview
The proliferation of ‘disguised remuneration’ tax avoidance schemes in the last ten years or so has resulted in serious financial harm for scheme users through no fault of their own, with the loan charge being the primary cause. Because scheme users are unable to afford the tax sums being demanded of them, HMRC and these taxpayers have reached an impasse. To break this deadlock, I and a group of tax professionals have called on HMRC and the government to take a constructive, pragmatic approach by recommending that they implement a settlement opportunity on individually negotiated, affordable terms that would offer closure and finality to affected taxpayers.
McDermott’s Tax lawyer Sarah Gabbai speaks to Tax Journal about the current problems, how and why they have arisen, and a proposal to resolve them.
