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Dodgy looking GDPR provision tax refunds

Looks similar to this: https://www.accountingweb.co.uk/any-answers/interesting-ct-we-case

Didn't find your answer?

See:

https://www.citadelclaims.com/

https://www.thedpoa.com/services.htm

https://www.corporationtaxrebates.co.uk/service/

The CT refund is presumably automatic if you are within time to amend the accounts/CT600 (so the "no win no fee" deal appears misleading) and it's unlikely to work for the same reasons as the dodgy pension provision planning in the links below that failed on W&E grounds* and of course even if it does work in practice (due to lazy/incompetent HMRC) it’s really just a timing difference, as the provision will almost certainly reverse at some later stage (possibly at a higher 25% CT rate), so it basically relies on the “not being found out” rule and taxpayer ignorance.

https://financeandtax.decisions.tribunals.gov.uk/judgmentfiles/j12280/TC...

https://www.accountingweb.co.uk/any-answers/interesting-ct-we-case

* an independent accounting expert would presumably value the provision at £nil, given the realistic risk in practice of a typical company with GDPR breaches being successfully sued (including settling in damages) for that.

 

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By Paul Crowley
13th Jan 2022 10:04

Read the pension case in the last copy of taxation
I would consider this scheme so outright disingenuous that success would mean no company ever needs to pay tax ever again.
Just add a fictional provision that makes tax zero

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Replying to Paul Crowley:
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By Justin Bryant
13th Jan 2022 10:29

But that is the very case I mentioned above! Yes; why use these people when you can equally take your pick of any potential legal claim provision (there's a lot to choose from as most businesses are in breach of one thing or another without any real prospect of litigation/claims thereto).

Also, GDPR is not a great one to pick re W&E (and/or fine disallowance) even if the provision is genuine. See by analogy:https://financeandtax.decisions.tribunals.gov.uk/judgmentfiles/j12292/TC...

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By ireallyshouldknowthisbut
13th Jan 2022 11:11

Justin, the words "bent as a nine bob note" spring to mind.

Its a shame HMRC dont run an efficient "whistle blower" system whereby such schemes can be 'shopped' and effective action is then taken in a matter of days to pull their websites and investigate the scheme promoters. No doubt the same old faces pushing a new variant of fraudulent claims on the tax payer and public purse.

Such an outfit would pay for itself within months.

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Replying to ireallyshouldknowthisbut:
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By Justin Bryant
13th Jan 2022 11:30

The words "HMRC" and "efficient" don't sit too well in the same sentence do they?

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Replying to Justin Bryant:
By ireallyshouldknowthisbut
13th Jan 2022 11:51

indeed, they are too busy wasting time with the magic world of MTD to do boring old boots on the ground compliance work.

Hire 1,000 competent tax inspectors, put 25% on missing traders, 25% on rooting out bad accounting practices with dodgy claims and the other half on the public DIY efforts (which will scoop up many a bad accounting practice hiding behind their client's log ins) and they would be closing the tax gap in no time.

But nope, the computer will solve it all.

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Replying to ireallyshouldknowthisbut:
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By Justin Bryant
13th Jan 2022 13:31

Agreed. If HMRC are reading this here's a free simple and cheap tax recovery tip. Presumably HMRC do the AML supervision for the above firms, so just get a list of all their clients and bingo! A few easy £millions in recovered tax. If HMRC isn't the AML supervisor, just send an information notice to these firms for these details.

On which subject, this from the link below gave me a good laugh:

"HMRC makes sure every taxpayer, no matter what their size, pays everything they owe"

https://www.gov.uk/government/news/hmrc-responses-to-inaccurate-claims

And this: "Robust measures were put in place to control error and fraud in the key coronavirus support schemes. The controls put in place delivered results"

Who are they kidding?

If you have any pub clients, perhaps you can tell them to provide and save tax on this similarly unlikely potential claim?:

https://www.solicitorsjournal.com/sjarticle/Council%20settles%20case%20o...

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By Paul D Utherone
13th Jan 2022 18:37

Oooo look...the Head Office of the DPOA I presume :) https://ghostmail.co.uk/61-bridge-street/

And funnily enough that's also the address for Citadel who are providing a claim service for DPOA members :D

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