The recent FOIA disclosures led to some further requests by me. I have now had the results of those requests.
1/33
HMRC have not actually disclosed the suspicious e-mail. But I can live without it. What the disclosures did reveal however is that HMRC send a monthly bulletin to MPs.
I wonder whether this communication exercise explains the reticence experienced with some MPs.
2/33
The draft anti-avoidance paper also makes interesting reading.
This, for example, shows the extent (as at January 2019) of HMRC’s action against promoters – relatively little action taken against promoters of loan arrangements.
3/33
The preceding screenshot also confirms how the APN legislation in 2014 led to a significant decrease in the number of disclosures under DOTAS.
That is wholly unsurprising and a regrettable consequence of the overburdening of the DOTAS rules.
4/33
Mary Aiston’s draft paper also makes interesting reading.
5/33
I am somewhat surprised that 18m after Rangers, HMRC still express the view that the loans are taxable as income.
That view has NEVER been accepted by any court or tribunal.
HMRC won Rangers only because they abandoned that argument.
6/33
In para 4, HMRC recognise a need to treat vulnerable people sensitively, but this compassion must be balanced with the need to ensure everyone pays the right amount of tax.
7/33
The highlighting in para 5 is HMRC’s.
It notes that HMRC got an easy ride when enacting the loan charge, but that the political landscape has since changed.
8/33
HMRC’s own figures suggest that 75% of those affected by the loan charge are contractors, who are effectively employees.
9/33
This confirms that the “avoidance market” changed radically in 2005/06 and HMRC’s response 7-8 years later.
10/33
HMRC here acknowledge that there were “some who genuinely didn’t realise that the arrangements were avoidance or feel they were forced into using the scheme”.
11/33
There is a lot on this screenshot. Mainly, HMRC’s acknowledgement that they could have done more and sooner.
12/33
But an earlier sentence is also worth considering.
HMRC recognise that their spotlights are NOT seen by most taxpayers & only by the professional community.
HMRC defend themselves by stating they opened enquiries in earlier years and therefore taxpayers should have known.
13/33
But what HMRC omit is that those enquiry letters told taxpayers that HMRC would tell them if they found anything wrong – yet HMRC said nothing.
And, as these screenshots show, the enquiries were not conducted quickly.
14/33
HMRC have frequently spun the line that the loan charge will be principally borne by employers.
This shows that this spin is completely false in relation to contractors.
15/33
The highlighting in para 22 is HMRC’s.
HMRC warned ministers about the significant impact of the legislation. It was the ministers who said press on.
We also see how the 2017 (not 2016) election allowed the parliamentary process to be fastracked.
16/33
The next few pages of the disclosure.
Again the highlighting is HMRC’s.
17/33
HMRC here acknowledge again the significant impact of the loan charge.
18/33
Here’s an acknowledgement by HMRC that the loan charge effectively ensures that HMRC’s views about a historical tax charge are now enshrined as a future and unchallengeable tax liability.
19/33
The rest of the section is mere puff.
20/33
This looks like a case of chicken and egg, regarding “unprotected” years.
Settlement terms require “voluntary” restitution because the loan charge would have caught unprotected years anyway.
And it makes HMRC’s life easier.
21/33
Interesting comments on HMRC’s media strategy.
22/33
Another admission that contractors (and not employers) will pick up the tab for the loan charge.
23/33
The remainder of the paper for completeness.
24/33
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Seeing the flurry of ministers and ex-ministers extolling their virtues and those of colleagues, I thought I would revisit an issue.
1/10
It will be remembered that the former FST (@meljstride) was shoe-horned into chairing the Treasury Select Committee @CommonsTreasury, with his appointment apparently actively supported by government whips.
2/10
I am advised that it is relatively unusual for an ex-minister to be appointed to such a high-profile position so soon after leaving office as there is a risk (and the perception) of marking one’s own homework.
3/10
This revelation raises a number of interesting points. 1. It shows that HMRC were very conscious that their new found use of s684(7A) might be struck down by the courts. 1/5
It has been of some interest to see a FOIA request seeking information about my meeting back in 2019 with @Jesse_Norman , then the FST, about the loan charge. He was newly in post and claimed to want to resolve the controversies.
1/15
The material disclosed will of course be of interest to those who will want to know what I said. In fact, I was asked on 14 June by the Treasury if I objected to disclosure. I responded the same day to say that I didn't object. I have nothing to hide.whatdotheyknow.com/request/meetin…
2/15
However, of equal interest perhaps is the efforts it took for this material to emerge.
From what I understood, a request was made 10 months ago for details (including follow-up comments) of all meetings JN had with external voices. I was one of ten. whatdotheyknow.com/request/meetin…
3/15
I make the following brief reflections on the Hoey proceedings.
They reflect solely my perception of the oral arguments and should not be taken as any comment on what the law actually says/means.
In short, I am pessimistic about Mr Hoey’s chances of success. 1/9 #hoey
It must be remembered that there are a number of different issues – ultimately representing HMRC’s different lines of attack.
2/9
HMRC’s most ambitious approach was to invoke the “transfer of assets abroad” code – this met strong resistance from the Court and I expect the Court to find in Mr Hoey’s favour on this point.
That leaves the case squarely in the realm of employment taxes and the PAYE rules.
3/9
This reference to “covering our backs” is rather unfortunate.
Unfortunately, the full range of strategies has been redacted. But it is interesting to see that HMRC have concerns about defining what is meant by “fair disclosure” by taxpayers.
2/13
Of considerable interest is the Treasury memo anticipating the announcement of what became the Morse review.
3/13