Recently I am finding that HMRC are seeking to class any company they can as associated for Tax purposes, even when it is blatantly obvious to all concerned that the company has not been set up as a vehicle to avoid tax. Many companies fall foul of what I consider to be poorly drafted legislation in this area.
2007-06-05 05:09:17 · 3 answers · asked by mm1234543212000 1 in Business & Finance ➔ Taxes ➔ United Kingdom
If companies are under common control, they are associated for tax purposes
2007-06-05 05:23:16 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The Government needs the money to spend on Managers, Consultants, Administrators and such ... they can't print it any more (doing so causes inflation), so they have to find some other way of raising more cash.
Selling off a bit more of British Energy helps of course, but £2bn doesn't go far these days.
Assuming they want to win the next election, they have reached the limit on Taxing voters (and stealing from their pension schemes) so all that's left is to squeeze a bit more out of businesses ...
2007-06-05 06:48:42 · answer #2 · answered by Steve B 7 · 0⤊ 2⤋
Well, they keep winning the tax cases, so they keep pushing the boundaries.
The UNM Group case was a fiasco.
The truth is, if you want the tax breaks you've got to play by their rules.
2007-06-05 07:06:52 · answer #3 · answered by Do not trust low score answerers 7 · 0⤊ 0⤋