HMRC is currently winning tax avoidance cases at a rate of nine out of 10, with many more being settled out of court, highlighting HMRC’s tough stance against tax avoiders.
The latest case involves former football agent Jerome Anderson, who lost his £1.2 million tax battle at the Upper Tribunal. The scheme involved investments in the recruitment and training of young footballers at the Bafana Soccer Academy in South Africa.
Anderson attempted to use this investment to claim a £3 million artificial trading loss to reduce his tax bill. However, the tribunal found that Anderson’s activities were more like those of an investor, and didn’t show that he was trading.
The decision meant he could not claim a trading loss and tax was due.
“The court has made it clear that these schemes don’t work,” said Penny Ciniewicz, HMRC’s Director General for Customer Compliance. “Our public services rely on everyone paying their taxes and it’s unfair for people not to pay their share.”
She added that anyone who’s caught up in tax avoidance and wants to put it behind them should come forward now and settle what they owe.
