Can the Revenue do this ???

loobs40

IR are investigating a coule of tax returns of mine in connection with a tax exemption I am claiming.

They naturally don't think I should have it, and I have had a letter to say they are going to get a change in the law to remove this exemption and then apply it RETROSPECTIVELY !!!!! Oh, and they have suggested I pay some money to them now so I don't get whacked for the 8% interest charge

Can they/Govt really get away with retrospective law changes ?

Bean_Counter

loobs40 wrote: »

Can they/Govt really get away with retrospective law changes ?

If it becomes law then they can get away with it. Whether it is fair or not is another matter. Dawn Primarolo seems to think this is always a great idea.

GARDINER

No the Government cannot apply the new legislation retrospectively however if the intention they have is to have the legislation that is already in place interpreted by the Courts then it will be applied to your case if it goes in their favour.

loobs40

GARDINER wrote: »

No the Government cannot apply the new legislation retrospectively however if the intention they have is to have the legislation that is already in place interpreted by the Courts then it will be applied to your case if it goes in their favour.

That sounds like it. They are interpreting one way and I am interpreting another !

Thanks, I had visions of them retrospectively hiking up tax rates whenever they wanted to raise some more dosh !

Cook_County

Can you be more specific because the accountants & lawyers in this forum may well be willing to give you additional case law backing for your position?

loobs40

I got a letter yesterday from the tax consultants who are dealing with this problem. They are prepared to go to the highest courts in the land to try to get this stopped. They even mentioned "breach of Human Rights" in their letter.

A long way to go methinks

BoGoF

I doubt very much that they have written along the lines implied in your original post. You sure that HMRC aren't saying that if after making an enquiry into your Tax Returns and are of the opinion that you are not entitled to this 'exemption' then they will apply this retrospectively to previous years Tax returns, which they can do under the discovery provisions.

In my experience, when accountants start shouting human rights in a tax enquiry it usually means they have lost the technical argument !!

terryw

Briefly, what is the claim that is in dispute?

terryw

terryw

GARDINER wrote: »

No the Government cannot apply the new legislation retrospectively however if the intention they have is to have the legislation that is already in place interpreted by the Courts then it will be applied to your case if it goes in their favour.

Sorry, but I must disagree. It is not likely, but legislation can be retrospective if Parliament so decide.

terryw

amf

BoGoF wrote: »

I doubt very much that they have written along the lines implied in your original post. You sure that HMRC aren't saying that if after making an enquiry into your Tax Returns and are of the opinion that you are not entitled to this 'exemption' then they will apply this retrospectively to previous years Tax returns, which they can do under the discovery provisions.

In my experience, when accountants start shouting human rights in a tax enquiry it usually means they have lost the technical argument !!

Agreed:) Invariably they then lose the HR argument before the Commissioners/Courts.

I also agree with terryw.......if parliament decides the legislation is to be retrospective, that is their privilege (subject to Court challenge possibly).

chappers

What are the specifics of the case loobs somone might have experience of your problem, they might not give the answer you want to hear but they may have some knowledge that may help your case.