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Tax scheme promoters scuppered by own scheme

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The promoters of the Alchemy scheme were so confident that it could turn earnings into untaxable gambling winnings, that they used the scheme themselves, with predictable consequences. 

14th Apr 2020
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The Alchemy scheme is a complex tax avoidance scheme using a combination of spread bets on financial markets to benefit directors and their companies.

The scheme has already been savaged by the first tier tribunal for the promoter’s failure to comply with the DOTAS requirements, and it has now been roundly defeated in another case (Root2 Tax Ltd TC07502).   

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Root2 Tax Ltd marketed the Alchemy scheme, and its three directors (Forsyth, Baker and Hughes) had such faith in its ability to avoid tax and NI that they used it for their own remuneration.

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Replies (2)

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By ireallyshouldknowthisbut
14th Apr 2020 17:54

Nice.

That brightened my day.

I like how they really believed it worked, rather than just cynically paying a tax barrister to say it does and then ripping off their clients for massive fees on schemes that they know probably don't work. Albeit given the size of the payouts, it sounds like they charged a few ££££ for this nonsense.

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By Justin Bryant
15th Apr 2020 11:20

See also: https://www.accountingweb.co.uk/any-answers/root-2-profit-extraction-sch...
Also, this scheme was mainly (if not solely) promoted pre-Rangers SC (not that that made any difference to its total hopelessness).

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