BBC News – Crackdown on Barclays tax schemes

English: East entrance of HM Treasury Français...

All Britain’s big banks have signed a code committing them not to engage in tax avoidance.

So it is highly embarrassing for Barclays that it has been accused by Her Majesty’s Revenue and Customs of designing and using two schemes designed to avoid substantial amounts of tax.

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.

via BBC News – Crackdown on Barclays tax schemes.

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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Posted on February 28, 2012, in Article and tagged , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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