2019 Loan Charge and Previous Legislation
Dear HM Revenue and Customs,
In relation to the impending 2019 Loan Charge, the Financial Secretary, Mel Stride has on numerous occasions stated (to Parliament) that tax was always due on loans.
1) Can you confirm whether, without the introduction of 2019 Loan Charge, would HMRC have been able to collect taxes it claims it is owed?
2) If the answer to Q1 is yes, (HMRC could collect tax without the introduction of the loan charge), please confirm specifically the legislation (and section) which allows HMRC to make such collection.
Yours faithfully,
A Khan
Our ref: FOI2019/00306
Dear A Khan,
Freedom of Information Act 2000 Acknowledgement
Thank you for your communication of 2nd February which has been passed to
HMRC's Freedom of Information Team.
We have allocated the above reference which you should quote if you need
to contact us.
The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.
Yours sincerely
HMRC Freedom of Information Act Team
Dear A Khan,
I am writing in response to your request for information, received 2nd
February.
Yours sincerely,
HMRC Freedom of Information Team
Dear [email address]:
Whilst I acknowledge your response stating ......
"HMRC has always taken the view that income tax and National Insurance was due on payments",
for the purpose of this FOI and in general all FOI's I expect you to factually answer my questions. As you will appreciate, your opinions on matters relating to legislation is neither relevant nor factual. Therefore I ask you the following questions which I hope will answer my original request:
In your original response you state in your own words - Payments received through DR schemes have always been chargeable as ‘earnings’ as defined by s.62 Income Tax (Earnings and Pensions) Act (ITEPA) 2003, and previously s.19 Income and Corporation Taxes Act (ICTA) 1988.
1) Why in that case have you introduced a new Loan Charge? If such income was "disguised" and taxes "were due" and could be collected, why can't you recover this under the existing legislation you have quoted? In answering this question you may wish to make a distinction between what the new loan charge offers which would otherwise not be available to you under the existing legislation you have described.
2) As you state the Rangers case in your answer, I further ask this question. Please clearly signpost me to the specific section of the Supreme Court's judgement in which they say loans are taxable as income as this is what you are clearly stating was one of the outcomes of the case in your original response.
Yours sincerely,
A Khan
Our ref: IR2019/00439
Dear A Khan,
Freedom of Information Act 2000 Acknowledgement
Thank you for your communication of 17th February which has been passed to
HMRC's Freedom of Information Team.
We have allocated the above reference which you should quote if you need
to contact us.
The Team will arrange for a reply to be sent to you which will either
comply with HMRC's obligations under Freedom of Information Act or, if we
think it's an enquiry that we don't need to address under the terms of the
Act, let you know why. If it is the latter we will, if possible, pass it
on to a more appropriate part of the Department for answer.
Yours sincerely
HMRC Freedom of Information Act Team
Dear A Khan,
I am writing in response to your request for information, received 17th
February.
Yours sincerely,
HMRC Freedom of Information Team
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