Trust and Loan Back Tax Schemes

Trust and Loan Back Tax Schemes

Didn't find your answer?

Good client rings me today saying he's spent the morning with a tax genius (his words not mine) that can set him up a trust fund in the Cayman Islands into which his salary can be paid and then loaned back to him saving a fortune in tax.

This tax genius comes from a regulated firm - surely he can't still wholly believe the words he's spouting following last weeks Rangers case?

Why is this known and professionally recognised firm of charlatans still peddling this discredited rubbish.

I'm already picking up the pieces of 30 poor soles who bought into this stuff in the mid 2000's - and they're all facing bankruptcy - and yet more unfortunates are still buying into the dream

Replies (6)

Please login or register to join the discussion.

avatar
By cparker87
11th Nov 2015 20:58

soles
Tax dodging shoe bastards.

In any case perhaps this super clever scheme is partly to do with an offshore element.

Thanks (0)
avatar
By Sheepy306
12th Nov 2015 09:38

I'm not a fan of them and never promote the schemes myself. However, as a short-term cash flow measure they still work don't they? As long as the client is fully informed in writing then it's entirely their choice.

I'm wondering what the so called tax gurus will move on to for their next fix. The concept of working for a good hourly fee seems to have gone out of the window for a slightly dodgy and irregular lump sum.

Thanks (0)
Out of my mind
By runningmate
12th Nov 2015 09:55

Yeah, should be fine.  Just remember to include the amount paid to the Cayman Islands as part of the net pay on the RTI return before it is paid ;-)

RM

Thanks (0)
avatar
By JimFerd
12th Nov 2015 11:25

Replace...

Your client should replace the words "tax genius" with "grubby little man".

Thanks (0)
avatar
By carlh
12th Nov 2015 12:08

hahaha - so many copies, they be be only one :)

Cayman Islands is a not a good idea they are a  BOT, (British Overseas Territory) and this will come back to bite them in the future. (not arms length)

Thanks (0)
Replying to stuartb:
Stepurhan
By stepurhan
12th Nov 2015 12:23

Detail?

carlh wrote:

hahaha - so many copies, they be be only one :)

Cayman Islands is a not a good idea they are a  BOT, (British Overseas Territory) and this will come back to bite them in the future. (not arms length)

The Cayman Islands are widely recognised as a tax haven. That being the case, this statement really needs a bit more explanation. Presumably sharing details of why this scheme won't work would not reveal the IP you have been so cautious about in the past. It would also be a positive contribution to the community in contrast to the self-promotion and semi-abusive posts you have made in the past.
Thanks (0)