Let off half the penalty

[kaosmark2]

Vince Cable doesn't pay taxes on all he's meant to, then when he's questioned, because he agrees to pay it back quickly, he only gets half the penalty. Would that happen to other people?

http://www.bbc.co.uk/news/uk-politics-15458400

[eFestivals]

Would that happen to other people?

yep, it very probably would.

HMRC operates a strict fines structure, with particular actions by debtors triggering the fines at different levels.

One instance that's been in the press recently where it's broken it's own fine structure is with one of the big banks (Merril Lynch I think). A number of banks were done for operating a particular tax avoidance scheme and all were fined and ordered to pay what they owed - about 5 years after it should have been paid.

They all paid up, except one who continued to challenge HMRC. Those who paid up were let off the interest on what they owed as is customary if they pay up willingly after they've lost. The remaining one kept challenging things for 5 more years and then caved in - but only after a promise from the head of HMRC that they'd be let off the interest. And now the collections dept of HMRC are going nuts about their boss undermining their own fines structures.

[kaosmark2]

yep, it very probably would.

HMRC operates a strict fines structure, with particular actions by debtors triggering the fines at different levels.

One instance that's been in the press recently where it's broken it's own fine structure is with one of the big banks (Merril Lynch I think). A number of banks were done for operating a particular tax avoidance scheme and all were fined and ordered to pay what they owed - about 5 years after it should have been paid.

They all paid up, except one who continued to challenge HMRC. Those who paid up were let off the interest on what they owed as is customary if they pay up willingly after they've lost. The remaining one kept challenging things for 5 more years and then caved in - but only after a promise from the head of HMRC that they'd be let off the interest. And now the collections dept of HMRC are going nuts about their boss undermining their own fines structures.

[eFestivals]

just opened my copy of Private Eye, and the very first story is about that case.

Firstly, it was Goldman Sachs, not what I said above.

They were let off £10M in interest by Dave Hartnett, the permanent secretary at the Inland Revenue. From what previous PE's have revealed, Hartnett has told parliament he had nothing to do with letting them off, while internal HMRC documents prove that everythiubng was down to him.

Hartnett is the same guy who let Vodaphone off £6Bn they owed in taxes (something else that PE was first to reveal, and which Hartnett has lied about).

If the guy running HMRC is letting the big guys off, we all know who picks up the tab instead.

[kaosmark2]

just opened my copy of Private Eye, and the very first story is about that case.

Firstly, it was Goldman Sachs, not what I said above.

They were let off £10M in interest by Dave Hartnett, the permanent secretary at the Inland Revenue. From what previous PE's have revealed, Hartnett has told parliament he had nothing to do with letting them off, while internal HMRC documents prove that everythiubng was down to him.

Hartnett is the same guy who let Vodaphone off £6Bn they owed in taxes (something else that PE was first to reveal, and which Hartnett has lied about).

If the guy running HMRC is letting the big guys off, we all know who picks up the tab instead.