Thread by @keithmgordon

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 1/7 Strangely I seem to have a different vocabulary. I say “retroactive” means going back and changing the old law, whereas law is “retrospective” if it merely looks back at old situations but imposes a present or future charge.

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 2/7 I say the loan charge is undoubtedly retrospective but (the way it is being used to force settlements for old years) also retroactive in effect.

Both are bad but IMO retroactive is worse.

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 3/7 I can accept that both can be justified in exceptional circumstances. BUT …

Given HMRC’s complicity (knowing or otherwise) in the Disguised Remuneration fiasco, this is not a case for either retrospective or retroactive changes to the law.

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 4/7 As we all know, HMRC say that they take the view that DR schemes never worked. Fine, they had the chance to open enquiries (and did in many cases). Then they should be prepared to test them in court.

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 5/7 Plus, if the Rangers case confirms their position, then HMRC also had the opportunity to issue Follower Notices to force people to settle without their day in court.

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 6/7 Yes, HMRC missed some years. But that’s life. Both taxpayers and HMRC routinely fail to correct things in time. But time limits are there to protect both sides and to promote certainty.

@TaxUnjust @SimonBurlington @rgarryneal @paullewismoney @BBCBreakfast @LordsEconCom 7/7 The loan charge drives a coach and horses through taxpayer protections and removes the balance of fairness in the tax system. It is utterly immoral that HMRC could persuade MPs to pass this legislation without acknowledging HMRC’s prior failings.