The 'Rating (Coronavirus) and Directors Disqualification (Dissolved Companies) Bill' will give the Insolvency Service new powers to investigate directors of companies that have been dissolved. The aim will be to prevent directors from dissolving their companies to avoid creditors.
SME Tax News
In Stephen Mullens v HMRC [2021] TC8112, the First Tier Tribunal (FTT) upheld discovery assessments charging income tax on £40m of payments omitted from a lawyer's tax returns. The taxpayer claimed these were gifts from his wealthy client.
HMRC have published an open consultation 'Draft regulations: DOTAS, DASVOIT and POTAS regimes', requesting industry views on the proposed rule changes. The Finance Bill 2021 will, when passed, enable HMRC to act decisively where promoters fail to disclose avoidance schemes at an early stage.
Gains arising from UK residential property must be reported using HMRC's online reporting system. The system is new and experiencing service issues.
In HMRC v Raymond Tooth [2021] UKSC 17, the Supreme Court ruled on two important issues in relation to HMRC's powers in making Discovery Assessments. Entering the correct figures in the wrong boxes of a tax return because there is nowhere else in the return to put them and to then make a full disclosure of that fact, cannot be construed as a deliberate error and the concept of 'staleness' in respect of assessments has a very narrow application.
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We have some useful new tools for you this week, all covering some tricky but topical areas of tax.
HMRC have issued guidance on what mini-umbrella company fraud is. It follows a BBC Radio File on 4 programme which revealed that as many as 48,000 companies had been created in the last five years under such arrangements, at a cost of potentially millions in lost tax revenue.
In Babtunde Iginla v HMRC [2021] TC8081, the First Tier Tribunal (FTT) restricted the amount of costs allowable against a capital gain for lack of evidence but partially allowed the taxpayer’s penalty appeal.
An analysis of the Apprenticeship Levy by the Chartered Institute of Personnel and Development (CIPD) found that employers lost out on £2 billion in apprenticeship training funds and the government scheme had 'failed'.
The Organisation for Economic Cooperation and Development (OECD) has released a report ‘Inheritance Taxation in OECD Countries’ calling on governments to increase taxes to help readdress wealth inequality.