charges for business

[steampowered]

There is nothing unlawful about a Gibraltar company doing business in the UK and charging VAT. All large corporate groups use companies in places like Gibraltar and the Cayman Islands for tax reasons (no stamp duty).

 

I don't think the profit & loss accounts are relevant. VAT is not charged on profit, it is a fixed amount charged based on the price of goods or services. There is no scope for that amount to be changed or deducted - the supplier simply collects the VAT and passes it onto HMRC on a regular basis.

 

I also don't think the corporate structure is relevant. Companies in the same group are permitted to share a VAT number. The only issue is whether or not the VAT charged was passed to HMRC. You don't need a layered corporate structure to commit VAT fraud: anyone can commit tax fraud by writing a VAT invoice and then not passing the amount onto HMRC. You could make the same allegation of any company or sole trader in the UK with a turnover above the VAT threshold (I believe around £70k a year) but unless there is something to support that it is not a reasonable allegation.

 

This is not the kind of situation where I would expect to see VAT fraud. The Directors of the company will be employees appointed by the pension fund trustees. These people are paid a salary: they are not substantial shareholders in the company or beneficiaries of the company. I am not sure why a salaried manager would risk imprisonment by committing tax fraud when the profits would go to the pension scheme beneficiaries (i.e. the employees and former employees of the oil company).

 

For these reasons I am still struggling to see any real reason to think there is tax evasion going on. I think you are better off focussing on your case against the landlord not on alleging tax fraud without any evidence to substantiate it.

[sharburrys]

Wrong!!!

 

1- They are the shareholders of the pension fund.

2- They are the beneficiaries of the pension fund.

3- They even get paid dividends from time to time. more cash more dividends, more cash is more bonus.

 

By the way if you were the shareholder of the parent company (not the pension fund) would you be happy the company covers all the costs of the pension fund as well as pay tehir employees salary? Personally I would not, because there is no benefit to the company...

 

I think we are looking at the wrong jurisdiction

 

In the UK - everyone agrees the fact that it is not ethical there are loop holes about the tax, one of which is Gibraltar, or cayman islands etc.

 

They can swap money around the tax heavens but!!! once they bring it to the UK boarders it is taxable...

 

VAT charged by a UK company and it is an income generated in the UK. VAT has not been paid to the HMRC very straight forward case.

 

Unless you give me an example of how you expect to see or the judge expect to see a VAT fraud? well I can tell you the public would love to see this as VAT fraud especially when it goes to the media??

 

You still have not answered my question: can you please send me a link stating that a dormant company can charge VAT on the income from properties using the group VAT number, please show me the opt to elect VAT on property for dormant companies

 

coming back to the case... Assume that I opened a case against the real landlord, and I won the case. and the landlord said fine but we dont have any assets or we are a dormant company? and they are not paying... so what is next? what will your advise be? we came back to the same square that we started from?

 

Regards

[sharburrys]

Also once you charge VAT you become an active trading company.

you can not state in your account that the company had no transaction in the last financial year. It is the fraud part

Thanks

[caro]

Hi everyone

 

I think I could not explain it properly...

 

I asked the judge to pierce the corporate veil based on "evasion principle" Guys I think I could not explain it properly These guys are owned by a big corporates pension fund (as a normal ltd) not a trustee...

 

They charge VAT on top of rent and their status in the companies house is dormant... I involved my connections (political and professional) includes in HMRC and the companies house; their accounts shows that there has been 0 transactions since 2004 until 2013....

 

Why do you think that they have sold 3 whole complex of industrial estates straight away we opened the court actions....

 

These guys are not within the accounting standards and my connection in HMRC told me that their accounts on HMRC's system is protected by a higher pin code...

 

Come on everyone dont be so naive... All I need is to expose them to the public and get my loss back... The judge could have done it as they have the power to do so and I explained him about the tax evasion even their barrister said

"I am not quite sure what it is as I deal with litigation not tax" they all know the case but did not want to do so..

 

Caro; it is non-sense there is no legal cost as the case was opened after 1st April and it has been allocated to the small claims court... the only cost they can request is their travel expense

 

Regards

Not nonsense I'm afraid.

 

Even though a court case is allocated to small claims, if there is a subsequent appeal or set aside of the decision and the applicant loses, they can still be liable for costs, including legal costs arising from the application.

 

I just think you need to be aware of this.

[sharburrys]

That is only granted if the applicant is wasting courts and defendants time. In this case there are geniune concerns and provided supporting evidence therefore that is out of the way; paying defendants cost? is it not?

[steampowered]

Also once you charge VAT you become an active trading company.

you can not state in your account that the company had no transaction in the last financial year. It is the fraud part

Thanks

 

Not if the company has assigned the right to receive rental income to another company in the same group, which is legal. As explained above companies in the same group can share a VAT number and pay VAT on a group basis.

 

In any event, even if the company has made an incorrect statement in its accounts it still would not be tax evasion. If the VAT is being paid to HMRC in full there is no tax evasion.

 

None of this has any relevance at all to your claim for breach of contract.