#Zahawi update: his lawyers have written to me, denying that HMRC investigated him under COP 9, the procedure for investigating fraud. Since they are in such a helpful mood, I'm optimistic they'll answer some further questions. Full correspondence below:
My email:
The Osborne Clarke reply:
And my response:
I have updated my list of Zahawi questions to reflect the COP 9 answer.
Obvious addition: anyone thinking of sending abusive messages to Ashley should ask themselves some pretty fundamental questions.
I publish Ashley’s name because I believe lawyers engaging in SLAPP should be accountable, to the public and to their other clients.
A response from Zahawi's lawyer:
The last time Ashley suggested I contact Zahawi's press officer, it did not go well:
But I am hopeful this time is different, so:
You can bookmark this thread to catch the reply.
But I probably wouldn't bother.
I'm delighted to say I received a response to my questions. The response says that Mr Zahawi is not going to answer any questions:
James Cleverly said yesterday that the Conservatives would raise £6bn by clamping down on tax avoidance, £1bn of which will fund their national service proposal
Our new report: a KC sold a hopeless tax avoidance scheme to vulnerable taxpayers... without telling them that he controlled the company that would profit from the scheme.
We've previously reported on the "loan schemes" sold to taxpayers in the 2010s. The schemes replaced normal taxable income with "loans" from offshore trusts, supposedly avoiding tax on wage income.
HMRC just sent this company a penalty - for £0.01.
Over-automation of penalties is a problem. In this case it just wasted postage. But in other cases it's hurting some of the poorest people in the UK.
THREAD
Our research showed that, over three years, 420,000 late filing penalties were issued to people too poor to pay tax
Despite earning so little, they for some reason received a self assessment form, didn't return it on time, and so got a £100 penalty. taxpolicy.org.uk/penalties2023/
Until 2011, penalties were capped at the tax owed. So if you were earning £5k and hit with a penalty, it would be cancelled once you eventually filed.
Private schools are promoting advance fee payment as a way to avoid VAT on school fees under a future Labour government.
We're concerned that schools and parents are taking a risk they don't understand, and it could all become a big mess. Thread:
We published a report in January concluding that most of the ways schools and parents could try to avoid VAT would not work. The one exception was paying fees in advance.
We said that paying several years' fees in advance would in principle avoid any later VAT change, because VAT would be charged at the point an early payment is made.
We added that we doubted many people would want to do this - but it turns out we were wrong.