Tax avoidance

Directors of companies have an absolute duty to shareholders to reduce the company’s tax bill legitimately. Morals do not come into it. If they fail, they can be sued.

So all this talk of “aggressive” tax avoidance makes good copy, but directors are obliged with their advisers to explore all legitimate routes. It may be that the current climate would result in advice that such schemes should be avoided as the gain not being worth the candle, but that was not the situation at the time when many people entered these schemes.

HMRC believes that the “Liberty” tax avoidance scheme will be held unlawful and that the tax payer will have to repay the deductions they were awarded. Fine. It goes to Court next year.

What is extraordinary is that powers are to be implemented to require the taxpayer to pay the money now. HMRC say “We reckon we are going to win the case next year so you pay now”.

That could not happen in any other area it is grossly unfair and against the taxpayer’s Human Rights. Any taxpayer facing such a demand should contest it with the help of an experienced streetwise, litigation, heavyweight lawyer.

Have a look at www.hylton-potts.com

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