BBC News – Crackdown on Barclays tax schemes
The government yesterday closed two tax avoidance schemes, to retrieve £500m of lost tax and safeguard payments of billions of pounds more tax in the future.
One of the outlawed schemes was a way of avoiding tax payments when a bank buys back its own debt. David Gauke, Exchequer Secretary to the Treasury, described this scheme as a transaction that a bank which has adopted the anti-tax-avoidance code “should never have adopted.”
The other outlawed scheme, exploiting provisions of regulations on Authorised Investment Funds, seeks to generate tax credits when tax has not been paid in the first place.
The measure taken to ensure tax is paid on debt repurchases or buybacks is highly unusual in having retrospective effect: it claws back tax already saved.
Strange Random Tax Quote:
“Next to being shot at and missed, nothing is really quite as satisfying as an income tax refund.” — F. J. Raymond, humorist
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- Tax Evasion Crackdown Could Mean Big Losses For Swiss Banks (huffingtonpost.com)
- IRS Criminal Penalties – Tax Evasion, Filing False Tax Return, Not Filing (taxdebthelp.com)
- Capital gains, everyone else loses (thehindu.com)
- Richard Murphy Taxcast: are banks playing fair? (liberalconspiracy.org)
- Tax Crackdown on Teachers and eBay Traders (link4business.info)
- Income Tax Evasion Dynamics (paul.kedrosky.com)
- Tax Evasion Costing The World Trillions Of Dollars: Report (worldwright.wordpress.com)
- More Than $3 Trillion Annually Lost To Worldwide Tax Evasion (thinkprogress.org)
Posted on February 28, 2012, in Article and tagged Barclays, BBC, BBC News, Britain, David Gauke, Exchequer Secretary to the Treasury, HM Revenue & Customs, Scheme, Tax, Tax avoidance and tax evasion, Treasury. Bookmark the permalink. Leave a comment.