News
HMRC could bring in £1bn in retrospective corporation tax
20 February, 2010
The HMRC has achieved a number of big successes during the past year with regards to corporate tax crackdowns. However, after the High Court ruling that retrospective legislation is not a breach of human rights, their latest success will clamp down on alleged corporation tax avoidance, which is set to rake in £1bn retrospectively and £1bn a year from 2011. This is particularly related to manufactured payments received by companies involved in sale and repurchase, or “repo” transactions.
A recent report has it that the HMRC will use the same strategy wherever it sees fit and possibly open up similar tax backdating in the future. A spokesman for the HMRC said that it has always had a responsibility, and will continue, to counter any scheme that is being used by individuals and businesses to avoid their tax obligations. As and when such schemes come to light, they will be closed down in the most appropriate and effective way.