Talent Resource Management Limited went into liquidation on 31 March 2009. Many contractors who had a Section 9a Tax Enquiry for 2006/07 tax year have seen very little development on their case and could feel that the matter is no longer going to pose a problem. However, HMRC have not yet got round to issuing Accelerated Payment Notices (APN) on non-DOTAS schemes such as Talent. Later this year, it is likely that participants will receive a Follower Notice based on the decision in Philip Boyle v HMRC accompanied by an Accelerated Payment Notice.
On 1 April 2009 many participants cheerily transferred to Cherrylon Marketing Limited and were followed by many new members. Unlike Talent, Cherrylon involved an Employee Benefit Trust (EBT) and this has Inheritance Tax (IHT) implications which may have not been foreseen by the promoter (Raingold). This was also a non-DOTAS scheme and is on HMRC's "to do" list where there is an open appeal or enquiry.
On the demise of Cherrylon many employees then went to Trentburg and therefore had the dubious situation of being in three different tax avoidance schemes over a period of six years. All three schemes would be subject to Follower Notices which carries a maximum penalty of up to 50% of the tax in dispute if "Corrective Action" is not taken.
From 1 July 2015, HMRC's "lenient treatment" of loans under the Transfer of Assets Abroad rules will probably come to an end and we could see a plethora of other measures bringing the final amount payable out of the reach of most contractors, thereby leading to bankruptcy. These measures include:
- Charging tax on invoice value rather than loans
- Accelerated Payments relating to National Insurance (NIC)
- Penalties for tax offences relating to tax returns due to lack of disclosure or Failure to Notify
- The new Follower Notice penalties
- Late Payment penalties on APNs
- Inheritance Tax (IHT) charges
- Interest due from the date on which tax should have been paid
After reading the above it is evident that you should be speaking with a Tax Specialist who only deals in this one area of taxation practice and who deals with many other similar cases.