June 24th, 2010
Major changes to the UK taxation of so-called non-domiciliaries (non-doms) were introduced from April 2008. Many UK tax resident non-domiciled taxpayers want to know if they should pay tax on the arising basis (facing a UK tax bill on their worldwide income as it arises) or pay the £30,000 Remittance Basis Charge (RBC) and only be taxed on foreign income they bring into the UK in the year.
This is an extremely complex area. Tax experts seem to be in universal agreement that the new rules are overly complicated, ambiguous and make it virtually impossible for non-doms to comply with the reporting requirement with any confidence. If you are considering whether to pay the RBC then it may be worthwhile if the following conditions apply to you:
- You are non-domiciled;
- You have more than £2,000 of unremitted offshore income or gains;
- You have been UK tax resident for 7 of the preceding 9 years;
- You have offshore income of more than £75,000 or offshore capital gains over £175,000 (which have not been remitted to the UK). [Based on current rates of tax for 2009/10].
If the above conditions relate to you, or you are the beneficiary of an offshore trust, a shareholder of an offshore company, are UK domiciled but ‘not ordinarily resident’ in the UK, or are unsure whether to pay the RBC then you need specialist tax advice.
Lynam Tax domicile specialists have decades of experience in dealing with residence and domicile issues.
Call Paul Lynam today for a free discreet discussion on: 0845 643 9997
March 3rd, 2010
The Adjudicator and The Ombudsman are there to help taxpayers who are unhappy with how the taxman is treating them. They can investigate complaints and award compensation. Many complaints are about how Tax Enquiries and Compliance Checks are conducted by HMRC.
The Adjudicator’s role is supposedly as ‘impartial referee’ in complaints about HMRC. Although separate from HMRC it relies on HMRC for staff. The Adjudicator can look at whether HMRC has acted within its own guidelines and can recommend remedies within the terms set of the taxman’s own policy.
The Ombudsman considers complaints about poor service by government departments, including HM Revenue and Customs. The Ombudsman has wider scope to look at HMRC’s actions than the Adjudicator and can recommend larger compensation than the taxman’s guidelines suggest.
Complaints can go to the Adjudicator directly but complaints to the Ombudsman have to be channelled through an MP. For both, you must have exhausted the taxman’s own complaints procedure first. Itself an exhausting process. NB. the adjudicator cannot look at complaints which the Ombudsman has already dealt with; whereas the Ombudsman will expect complaints to have been through the Adjudicator’s office first. And neither can consider complaints about the technical aspects of tax law or where is a legal route for redress through the courts or the Tax Tribunals appeals system.
Pursuing a formal complaint can be a soul destroying task but a very large percentage of complaints are upheld, and it can lead to worthwhile compensation payments.
Lynam Tax Dispute Experts have decades of experience in sorting out contentious issues with the taxman. If you need help in dealing with HMRC or are considering making a complaint then: for a free and totally confidential discussion call Paul Lynam now on: 0845 643 9997.
October 30th, 2009
Some misleading reports in the professional press have prompted some clients to ask if HMRC can get information from us about our communications with clients; or if these communications are ‘protected’ in the same way as lawyers’ communications are protected by Legal Professional Privilege (LPP).
Since 1st April 2009 the tax law has been changed and clarified. Put simply: there are now 3 types of privilege protection; and all 3 apply to professional tax advisers; such as Lynam Tax. The newest concept is tax adviser privilege. The law now states that HMRC cannot require a tax adviser to provide information or produce documents which relate to communications regarding the tax advice provided. Also, where communications would be subject to LPP, or thirdly, litigation privilege (e.g. communications relating to a Tax Appeal) then no person, including a tax adviser, can be required to produce them to HMRC.
These rules (combined with Lynam Tax’s special legal position in relation to the Money Laundering Regulations) mean that effectively Lynam Tax can give you as much “privilege” protection (i.e. complete confidentiality) as all lawyers and more than many accountants or other tax advisers.
If you are worried about a Tax Enquiry then Lynam Tax Enquiry Experts can help you. For an initial free confidential discussion call Paul Lynam now on:
0845 643 9997
September 9th, 2009
“The Adjudicator acts as a fair and unbiased referee looking into complaints about HM Revenue & Customs (HMRC), including the Tax Credit Office (TCO), and the Valuation Office Agency (VOA)”; according to their website. The Adjudicator will investigate and help to resolve complaints from individuals and businesses who are still unhappy about the way their affairs have been handled; after the Revenue’s own complaints team have dealt with it and have received a final response from them.
The Revenue Adjudicator can deal with complaints regarding HMRC administration. This includes excessive delays in processing tax claims, errors made and discourtesy to taxpayers. The Revenue Adjudicator does not deal with: technical tax disputes (which can be dealt with by the Tax Tribunal); complaints that have already been investigated by the Parliamentary Ombudsman; or matters relating to a criminal prosecution, during the course of legal proceedings.
The Revenue Adjudicator will normally only get involved after HMRC have had the opportunity to sort out the problem using its internal complaints procedures. But exceptionally they may help you sooner, e.g. if delay could cause you or your business irreparable damage.
The Parliamentary Ombudsman can also help with complaints against HMRC in procedural matters, e.g. if there has been: avoidable delay; failure to give appropriate advice; failure to follow proper procedures. The Ombudsman cannot investigate complaints about tax policy or tax legislation. Complaints to the Parliamentary Ombudsman have to be referred by your MP; so approach your MP first, but preferably after you have exhausted the Revenue’s own complaint process and after the Adjudicator has looked into it. Even though cases that reach the Ombudsman may already have been rejected by the Revenue and the Adjudicator, nevertheless many people are successful in their appeals to the Ombudsman.
If you have a dispute with the taxman and you feel they have behaved improperly or unfairly then in some cases it can be worth making a formal complaint. Where worthwhile sums are involved it’s always sensible to engage skilled and experienced tax advisers to prepare your case and fight your corner. Lynam Tax Enquiry Experts have helped many clients who were aggrieved with how the taxman was dealing with them – and we have frequently been able to bring about a positive outcome.
Call today for a confidential, discreet discussion with our experienced Tax Investigation Specialists.
Call Paul Lynam now on 0845 643 9997
September 7th, 2009
Just how complicated is the UK tax system? Well, a leading tax information publisher (Lexis Nexis) says its famous Yellow Tax Handbook (which basically contains all the UK’s tax legislation) has more than doubled in size from under 5,000 pages in 1997 (when the Labour government came into power) to a staggering 12,000 pages today!! And that doesn’t include hundreds of tax cases and Tax Tribunal decisions, which also affect the interpretation of UK tax law.
This is just one alarming illustration of the increasing complexity of the UK tax system. Even us full time tax professionals find it hard to keep up. No wonder so many of our clients say they find the tax rules completely baffling. In our experience very few Tax Inspectors have a thorough working knowledge of the key aspects of the law they rely on: and we frequently find them misunderstanding and misinterpreting the rules and wrongly accusing clients of owing tax – and then trying to charge tax geared penalties on top as well! That’s why so many businesses undergoing a tax enquiry use experienced, qualified tax professionals like Lynam Tax Enquiry Experts.
What does it mean to me?
If you feel daunted by the tax rules and think a tax officer is treating you unfairly then it may be down to his ignorance, lack of training or simple misunderstanding of very complicated rules. Experienced tax advisers like Lynam Tax experts can help the tax inspector understand the law and frequently this will reduce your tax bill.
If you’re subject to a worrying Tax Enquiry or Inspection or you haven’t declared all your income or gains and need to discuss this with a sympathetic, experienced professional, then:
For a free, private, no obligation consultation, call Paul Lynam today on 0845 643 9997
April 22nd, 2009
The UK tax authority, HM Revenue & Customs can get information from a very large number of countries round the world, and give those countries information too.
There are two major legal routes for the taxmen to pass information over their borders. Firstly the Mutual Assistance Directive (MAD) between EU member states. This requires EU member states to provide each other with information in order to determine tax liabilities. It also allows, say, HMRC in the UK to use some other member state’s Tax Information Powers in order to obtain details e.g. from say a bank in that other country. The EU MAD also provides for relatively simple cross-border debt collection, bankruptcy and extradition procedures.
Secondly, the UK now has a large number of treaties with overseas countries (including many usually or previously considered as tax havens). These treaties provide for exchange of information. The two normal arrangements are Double Tax Agreements (DTA’S) and Tax Information Exchange Agreements (TIEA’S) – see our other articles. The UK now has DTAs and TIEAs with the majority of countries in the world: including recent ones with so-called tax haven countries.
If you are concerned about an offshore bank account or offshore assets, or have any historic tax liabilities that are worrying you, or think the Tax Amnesty may benefit you: then Lynam Tax Enquiry Experts can help. Call today for a confidential, discreet discussion with our experienced Tax Dispute Specialists.
Call Paul Lynam now on 0845 643 9997
March 3rd, 2009
The European Union Savings Tax Directive (EUSTD) came into effect on 1 July 2005 and applies to all EU member states. The EUSTD applies to an individual who is resident in an EU country and has interest paid to him in another member or participating state. It provides for automatic exchange of information on interest payments. That means any bank interest paid to a UK tax resident anywhere in Europe gets reported to HMRC in the UK – even for people who are not-domiciled in the UK.
Most Dependent and Associated territories (e.g. the Channel Islands) plus Andorra, Liechtenstein, Monaco, San Marino and Switzerland have all adopted similar rules, as have. Singapore, Hong Kong and Barbados did not participate. It was agreed that as an interim measure that Austria, Belgium, Luxembourg and some non-EU countries (e.g. Switzerland) instead had the option of deducting a withholding tax (currently set at 20 percent: 2009) instead of automatically reporting the interest paid. They are not excused from any other reporting requirements outside the EUTSD.
On 13th November 2008 the Commission announced that it was amending the EUSTD in an attempt to close loopholes and eliminate tax evasion. The amendments extend the responsibilities of paying agents (e.g. banks) in respect of so-called intermediate structures established outside the EU and of certain EU trusts and foundations. A key measure is the introduction of the concept of “beneficial owners” of offshore companies and trusts. For instance if a Panamanian or Liechtenstein Foundation (settled by UK tax residents) has a bank acount in the Isle of Man then the interest would be reportable under the Directive. The scope of the EUSTD is also extended to certain payments not constituting interest. The amendments have to be applied by Member States within 3 years of them coming into force.
On 2nd February 2009 the Commission adopted 2 measures for new Directives to improve and increase “mutual assistance” between Member States’ tax authorities in the assessment and the collection of taxes. As a result Member States will not be able to cite banking secrecy in order to refuse cross-border cooperation.
No doubt the tax investigators runing the New Disclosure Opportunity and the Liechtenstein Disclosure Facility will be sifting through all this information witha fine tooth comb.
If you are concerned about an offshore bank account or offshore assets, or have any historic tax liabilities that are worrying you, or think the Tax Amnesties may benefit you: then Lynam Tax Enquiry Experts can help. Call today for a confidential, discreet discussion with our experienced Tax Investigation Specialists.
Call Paul Lynam now on 0845 643 9997
August 1st, 2008
Reports in the press say that public bodies like HMRC are getting authority to carry out surveillance on huge numbers of UK citizens – more than 1% of the population each year – under the Regulation of Investigatory Powers Act 2000.
The Home Office have published draft codes of practice concerning the use, by public authorities, of powers conferred by RIP 2000. The code most relevant to tax investigations is “Covert Surveillance”. Covert Surveillance is carried out in a way to ensure the subject is unaware of it.
The code runs to 30 pages, but some brief extracts give a good flavour of how the taxman will operate in a tax investigation.
“…HMRC officers might covertly observe and then visit a shop as part of their enforcement function to verify the supply … of goods…Such observation may include the use of equipment [e.g. cameras]…where this does not involve systematic surveillance of an individual. It forms part of the everyday functions [of HMRC]…This low-level activity will not usually be regulated under …the Act”.
“Directed Surveillance is conducted where it involves the observation of a person…with the intention of gathering private information to produce a detailed picture of a person’s life, activities associations”.
“Intrusive surveillance” takes place inside residential premises or vehicles; i.e. telephoto spying.
Where a tax investigator wants to use carry out Directed or Intrusive Surveillance he needs written authority form a senior tax inspector, usually in the same office. Covert surveillance does not require such authorisation but the code suggests that best practice and the need to get evidence admitted in criminal proceedings [which per the Human Rights Act could include cases termed civil by HMRC e.g. Civil Investigation of Fraud cases] is that authorisation should be sought in all cases.
What does it mean for me?
If you are worried that the taxman has put you under surveillance then you are probably undergoing a tax investigation. Lynam Tax specialise in dealing with HMRC and are experts helping people under enquiry.
If you need advice and help in a difficult Tax Enquiry call Lynam Tax Enquiry Experts now on 0845 643 9997 or email partners@lynamtax.co.uk
July 1st, 2008
In certain circumstances the little known practice of Equitable Liability can be invoked to reduce tax debts.
The normal way to displace Tax Determinations is to submit tax returns showing the correct level of profits. Currently, this can only be done within a five-year window. Where that route isn’t open to taxpayers then HMRC’s Enforcement and Insolvency Services (EIS) based in Worthing can consider Equitable Liability. Basically that means the taxman will only collect a fair amount of tax; and not the figure they have already assessed. This is particularly useful for taxpayers who ignored demands until the formal appeal system time limits ran out. That happens most frequently with taxpayers who have been ill or too stressed or confused to deal with their tax arrears; particularly when they had no way of paying the large estimates used by the tax inspector.
HMRC said (in August 1995) that Equitable Liability could apply if: “in the circumstances of the particular case and in the light of all the evidence, it is clearly demonstrated that: the liability assessed is greater than the amount which would have been charged had the returns, and necessary supporting documentation, been submitted at the proper time, and ‘acceptable evidence is provided of what the correct liability should have been.” Experience also shows that the taxman also requires that: taxpayers can provide legitimate reasons why they failed to deal properly with their tax affairs; and that their tax affairs are otherwise up to date.
Equitable Liability is a last resort but one that can be very useful, especially when someone is faced with a high tax demand based on estimated figures. In some Tax Enquiry situations it can be used to clear earlier years’ arrears.
What does it mean for me?
If you have a tax dispute or tax debt issue where the Revenue’s figures are based on estimated figures then an Equitable Liability argument might help you. Where worthwhile sums are at stake it is always worth engaging skilled and experienced tax advisers to prepare your case. Lynam Tax Enquiry Experts have helped scores of clients with tax debt problems.
Call today for a confidential, discreet discussion with our experienced Tax Investigation Specialists.
Call Paul Lynam now on 0845 643 9997
June 1st, 2008
Many people who contact us about tax evasion ask if we have to report them under the Anti-Money Laundering Regulations. The short answer is no.
February 2006 saw a significant change to the Money Laundering Reporting rules for certain tax investigation specialists, such as Lynam Tax. Technically this is because we have been classified by law as “Relevant Professional Advisors” providing “Defined Services”. The new rules and exemptions do not apply to all practitioners; in particular they do not apply to people who are not members of approved professional bodies (like the ICAEW and ACCA). They will also not apply to many professional accountants who are members of such bodies, as they may not be covered by the “Defined Services” provision.
It is now possible for specialist professional tax investigation advisors like Lynam Tax Enquiry Experts to have meetings with people who have irregularities in their tax affairs in the strictest confidence. As these meetings are to advise on tax law and how to regularise the situation, such meetings will be bound by legal professional privilege. Consequently it would actually be illegal for us to disclose any contents of that meeting to anyone, even under the Money Laundering Regulations.
This means we have the same status as Lawyers in this regard. Indeed the guidelines say we are “expected to be bound by the same standards of behaviour as legal professional advisers (i.e. lawyers) subject to legal professional privilege”. Any discussions with us are therefore subject to client/ attorney privilege. This means you can come to us for advice about your tax affairs (including the most serious of tax frauds), without the fear of being reported.
What does this mean for me?
Very few people who have fiddled their tax get prosecuted in the UK each year. HMRC prefer to obtain money settlements, usually under the Civil Investigation of Fraud procedures. It is usually only those few people who fail to properly handle a tax enquiry who end up with a criminal investigation. So if your worry is about being prosecuted then the best thing you can do is to talk to us (in total confidence remember) as soon as possible. Where people speak to us soon enough we can ensure that the taxman does not prosecute.
Lynam Tax partners have a vast amount of practical experience in managing tax investigations and tax enquiries. We have successfully persuaded HMRC to drop criminal charges in a number of cases (where they have already started proceedings) and we can also assist specialist defence solicitors in cases which do end up in court; when we have been able to substantially reduce the amounts of money being sought by HMRC.
We can advise you on the best course of action in order to obtain the optimum outcome for you, your business and your family.
For a free, strictly private, no obligation consultation, call Paul Lynam today on 0845 643 9997
