HMRC demanding repayment of tax refund - Fast Tax Rebates Ltd again

[slick132]

Hi Alvin and welcome to CAG

 

Please start your own new thread here in the HMRC forum.

 

Tell us briefly how you came to get a tax refund, what tax advisor did you use, what is HMRC doing to reclaim from you and are they after the full amount you were refunded.

 

Hi Alvin,

 

I've started you a new thread here to use and give us info about your case.

[slick132]

Hi Alvin,

 

You say above you were contacted by FTR - was this by phone, email, letter, etc ?

 

And do you still have a copy of anything they wrote to you.

 

If you received £4,000, do you know what the total refund was, or what percentage FTR said they'd charge you.

 

FTR were not investing on your behalf. If I understand correctly, FTR submitted a tax refund claim on your behalf stating that you invested in an EIS (Enterprise Investment Scheme) which gave rise to a tax refund to you.

[slick132]

8 hours ago, Alvinsmalvin said:

I dont have anything bar the emails of me sending my pics.

Sending what pics please.

 

Do you recall giving FTR Authority to Act, by signing a form, ticking a consent box, or anything else.

 

I wonder if HMRC have been reckless accepting (however many) tax claims made by FTR on behalf of clients without asking for proof of funds actually invested in an EIS. I'll discuss this with the Site Team.

[slick132]

Alvin, you need to send HMRC a SAR immediately.

 

Please confirm how many people you know of were involved in this scenario with FTR.

 

See the advice on the other thread here - https://www.consumeractiongroup.co.uk/topic/435744-hmrc-asking-me-to-repay-a-rebate/

 

Follow the same advice about getting your SAR data but personalise it to reflect your own case.

 

Check here if you're unsure about anything but read thread Dixon's thread first.

Edited June 28, 2021 by slick132
typo

[slick132]

Just so the 2 cases are cross-referenced, a similar case was started recently by another CAGger, Dixon,  here - https://www.consumeractiongroup.co.uk/topic/435744-hmrc-asking-me-to-repay-a-rebate/?do=findComment&comment=5114547

 

Same company - Fast Tax Rebates and same ploy reclaiming tax on behalf of a taxpayer but keeping most of the refund.

 

But keep each thread and case separate, to avoid confusion.

 

[slick132]

Hi Alvin,

 

The following was kindly posted by CAGger @taxhelper in response to my request for opinion. Please read it carefully and respond here to any Q's raised.

 

I have read all comments/posts in both threads. I know that HMRC are looking closely into what they term “bulk repayment agents" as this story is not unusual. Please feel free to post whichever parts of my comments would prove helpful in these two threads.

 

It appears that both Dixon2094 (“D”) and Alvinsmalvin (“A”) gave FTR some form of authority to act on their behalf. D says clearly “I allow them access to my Government Gateway account” and presumably A also handed over his personal access codes. They should NEVER have revealed this information.

That said, we are where we are.

 

If D and A were recommended by friends/mates to use FTR, and the friend/mate received an introductory commission from FTR, how did the friend/mate get their money? If by bank transfer or cheque they may have FTR’s bank details. Those may help investigations.

 

I see that both D and A have been asked to supply details of the “investment” made on their behalf. In other words – in which EIS company/companies was their money invested? I cannot see a reply to this from either D or A.

 

If, as we all suspect, there is no such investment, and FTR simply stole the money, then this is clearly a scam, a wholly criminal matter to be reported to the police and they must tell HMRC that the crime has been reported and send the crime number to HMRC immediately.

As Unclebulgaria said in post 39 to D’s thread…..D and A must report everything to ActionFraud…..

 

 

 Action Fraud

WWW.ACTIONFRAUD.POLICE.UK

---

National Fraud & Cyber Crime Reporting Centre

 

As many victims as possible need to make crime reports so the police and HMRC can pool data to track down O’Hara and McNabb to take necessary action.

 

Once proven compensation may be due via the CICS…

 

 How victims of crime can apply for compensation

WWW.MET.POLICE.UK

---

If you've been the victim of crime, find out how to seek compensation for any losses or injuries you have received.

 

As other have said this situation also needs to be reported to the Information Commissioners Office, Trading Standards and Companies House.

 

IMO all victims should also report this to their Members of Parliament and local/national press.

 

If publicity is high then authorities will not be able to ignore it and HMRC may well be forced to take a more sympathetic approach.

 

Perhaps e-victims.org would also be able to help.

 

 The issue of success at appeal has been somewhat dismissed but I think a different outcome is possible. Particularly if it is proven they were victims of a scam/crime.

Both D and A were ignorant about what was going on. They trusted what they believed to be an authoritative source. HMRC will undoubtedly counter this with the mantra “ignorance of the law is no excuse” but that has been held to be too short sighted in several recent cases.

 

 An exception to this general principle would be justifiable where there are finely balanced issues which are unclear.

 

In one case the judge considered that a taxpayer had informed his advisor but the advisor (in this case FTR) had failed to inform the taxpayer of his filing obligations. The judge accepted this argument on the facts and quashed the penalty.

 

Whatever the outcome of the debate on ignorance of the law D and A should consider running alternative grounds for ‘reasonable excuse’ or, if penalties are imposed in the end, a ‘special reduction’. Such arguments succeeded in Welland v HMRC [2017] and  Hart v HMRC [2018] despite the judges’ strict approach on the main issue of ‘ignorance’.

[slick132]

Hi Alvin,

 

Take time to carefully read the opinion offered above by @taxhelper as it may be your best way forward.

 

Please contact the police to complain you have been the victim of fraud at the hands of FTR and Alan O'Hara. You may need to be determined as the police may not want to get involved initially.

 

But once you do this and get a crime Ref No, you will be in a stronger position to deal with HMRC.

 

The same advice is being given on the other FTR case running here.

[slick132]

Hi Alvin,

 

Please engage with us by keeping up to date with your thread here as this could be your best chance of challenging HMRC's claim for full repayment to them.

 

Have you contacted the police and given them all the info you can ?

 

Thanks.

[slick132]

Hi Alvin,

 

Please let us have info we need before you approach HMRC.

 

1. Have they sent you revised tax assessments, and for which years. 

 

2. What amount are they now demanding for each year.

 

A Crime Ref No is a start but you'll need to be far more pro-active about this. You need to contact the police again to find out exactly :-

 

3. What they are doing to recover your money (approx £8,000).

 

4. What they will do to trace the alleged fraudster(s).

 

5. When they will contact HMRC confirming the nature of the alleged.

 

Have you carefully read through post #26 above - if so, have you and all those affected, made individual complaints to Action Fraud. If you all contact the police and Action Fraud, you will improve your chance of not having to repay the full amount to HMRC.

[slick132]

Hi Alvin and thanks for the info.

 

The revised assessments for the 3 years will include info on what to do if you dispute the figures, including the date by which you should appeal. Make sure you meet this deadline and make it clear you're disputing all 3 years.

 

I suggest you put the following as reasons for disputing their figures :-

 

I dispute the amount demanded for the tax year 2017/18 (2018/19; 2019/20).

 

I have been the victim of fraud carried out by Fast Tax Rebates Ltd who made a tax repayment claim on my behalf and kept the majority of the tax repaid.

 

The matter has been reported to Action Fraud who will report the matter to the police. I am waiting to hear back from Action Fraud and the police but I have been given a Crime Ref No. if you require this.

 

In the meantime please postpone collection of tax demanded for the 3 years.

 

Do your best to put away money each week or month so, if you ARE required to repay some or all of the tax, you will be better prepared to offer at least something.

[slick132]

Hi Alvin,

 

I've edited your post above - please hide personal data including name, address, etc.

 

Absolutely right - keep all comms in writing only !

 

Please confirm, did the person replying give a job title or position, or just their name. We don't need their name but tell us if they used a title or position, thanks.

[slick132]

Hi Alvin,

 

Best if you take a pic or scan the comms from HMRC and post here as a PDF but hide any personal info.

 

Then we can advise a response to HMRC's last comms.

[slick132]

Hi Alvin,

 

Thanks for uploading the letter from HMRC.

 

We will take time to consider your options properly and come back with suggestions in the next few days.

 

 

[slick132]

Please confirm :-

 

1. Date you sent HMRC the SAR

 

2. Date of HMRC's letter rejecting the initial appeal.

 

We need to ensure you don't miss the date to tell HMRC your decision.

 

 

[slick132]

Please state the date of HMRC's letter.

[slick132]

Letter to HMRC :-

 

Dear Madam,

 

I refer to your letter of 26th July.

 

I sent HMRC a SAR on 23rd July and, until I receive a full response including all necessary data, I am unable to decide how to proceed regarding the 3 options you set out in your letter.

 

Please therefore postpone further action until HMRC responds properly to my SAR and I've had time to consider all data and take advice in the matter.

 

Yours faithfully,

Alvin

[slick132]

Hi Alvin,

 

Schipoo has had the same reply.

 

Please wait now while we (the Site Team) discuss this and decide on a response that you can all use to go back to Action Fraud.

 

This may be more effective.

[slick132]

Hi AlMal,

Forget about further approaches to Action Fraud or your MP - it won't help your individual case.

Have a look at Dixon's thread and others to see what individual points you can raise that are relevant to your case. Several others have commented on threads even though they're not necessarily their own threads.

Make sure you meet the deadline you mentioned above - you have 2 weeks to give this your best shot.

[slick132]

Noted.

Keep an eye on the other threads here including the update a few hours back by Rob Carr.