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HM Revenue and Customs (HMRC) has published the details of five further tax avoidance schemes, including three promoted by AML Tax (UK) Limited.
Last year, AML Tax (UK) Ltd was fined £150,000 for failing to provide HMRC with legally required information as part of a tax investigation.
The five schemes all seek to disguise remuneration, something that HMRC classes as tax avoidance.
The three AML linked schemes named are:
Other schemes named are:
The three AML schemes make use of complex company structures and directors’ loan accounts to extract profit, providing directors with income where Corporation Tax, Income Tax, and National Insurance contributions were not correctly paid. The other two schemes make one payment to users that is close to National Minimum Wage and then another disguised payment, which the promoters claim is non-taxable and Income Tax and National Insurance are not correctly deducted.
Following publication of the first enablers related ti GAAR Panel opinion on GOV.UK in October 2022, HMRC has now issued the first enablers penalties.
Enabler penalties are applied to anyone who facilitates or helps to implement tax avoidance, which is 100 per cent of the enabler’s fees. This sends a clear message that HMRC can make the sale or facilitation of tax avoidance schemes unprofitable. These are the first cases to reach the penalty stage. HMRC is tackling the tax avoidance supply chain with over 150 enablers under investigation.