An addendum. Setting up a corporate identity, where the reality is that the beneficiary is an individual is more than a wheeze. It is untrue.
Other schemes which HMRC has examined are similarly flawed but sold on the basis that tax will be reduced, on the basis of absurd propositions. Such as the "self-employed" status of people working for large corporations. There are a number of tests that can be applied to help decide employment. Whether, for example, the individual has an investment in the purported business, the exposure to risk, the directing mind, the ability to act autonomously of the corporation etc etc.
Therefore evasion, not avoidance because the house is built on sand. GB must have been soft in the head if he gave leeway to the dodgers.
I can understand HMRC not wanting to take these issues to court, because it is strapped for cash and resources. They are dealing with power, and have little support from HM Government.
The forces against HMRC are formidable and I suspect, some are ruthless.
But it is only now, when the sticky stuff has hit the fan, beginning to talk about brigading other agencies to help address the destabilising effects of slack, due to non-enforcement, and failure to pursue criminality. This may give them some support.
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