HMRC seek repayment after Fast Tax Rebates Ltd take most of rebate

[slick132]

Thanks Schipoo,

 

Just so others know, I've received your revised draft and I plan to knock it into shape and post it here by tomorrow.

[Schipoo]

Ok, my final draft…..

 

I would like to appeal the decision to strike out the tribunal below.

 

I sent my objection to strike out application to HMRC on 17th March 2022 (copy attached), Being an unrepresented tax payer I considered this was the right course of action, and the HMRC litigator (who was aware of my unrepresented status) did not advise me to send it to the Tribunal. 

 

I was approached by Maxwell Accountancy specifically Alan Maxwell,  via a work colleague, to make a claim for expenses. They told me it would cover 3 tax years and was asked to call HMRC to open up years 2017/18, 2018/19 and 2019/20. I called into HMRC on 24.2.2020 to do so which are confirmed in the notes on my SAR.

When Sandra Patrick from HMRC wrote to me on 23.2.2021 to ask for EIS certificates I had no idea what she was talking about.  I was then advised that FTR Ltd had claimed for EIS relief for 3 investments.  I did not give Fast Tax Rebates Ltd any such authority to carry out any work on my behalf.  I had no contact from FTR Ltd whatsoever. The suggests to me that Alan Maxwell passed on my information onto a third party without my knowledge or agreement. 

 

The funds were requested to be sent to a nominated bank account given by FTR Ltd in a bank account in their name, I didn’t authorise them to do that, and i did not sign any tax returns or authority to receive any money on monies on behalf. subsequently, I found out 12 months later that I only received 1 third of the full amount paid out to FTR Ltd by HMRC.

 

My earnings in those 3 tax years wasn’t enough to justify making the investments FTR Ltd say I made.  The Ltd Co they say I invested in has the same director as FTR Ltd.  What was it that prompted HMRC to investigate my case?  Was it because the officer thought that the amount of investment outweighed what was possible on my salary? 

 

 

I did not see, review or sign any form for any claim with Alan Maxwell of Maxwells Accountancy. Nor did I see any return from HMRC to say I had claimed to having made any investment under the EIS.  Nor did I see what was claimed by FTR Ltd.  The loss sustained by HMRC was brought about by FTR Ltd and they were facilitated by HMRC’s policy of pay now and check later.

 

 

I have recently learned of UK Statutory Instrument 2003, No. 282, PART 3, Regulation 8 - any information delivered by an approved method of electronic communications on behalf of any person shall be deemed to have been delivered by him unless he proves that it was delivered without knowledge or connivance. I had absolute no knowledge that fraudulent claim was being made by a third party receiving repayment of whom I had no knowledge. 

 

The reasoning to overturn the closure notices dated 23.2.2021, refer to Section 8 of the taxes management Act 1970, and that the returns were not submitted in accordance with that provision. Therefore HMRC are not able to open an enquiry under section 9A TMA 1970, and by extension issue a Closure Notice under Section 28A TMA 1970.

 

There has been some very recent Tribunal Rulings which are very similar to my case, they refer to the same scam, and these were not Struck Out.  These are McCumiskey V HMRC on 12th April 2022 and Huntly V HMRC on 22nd April 2022.  In the latter Huntly was given permission to join 9 others in a Group Litigation being handled by a tax advisory firm.

The McCumiskey decision shows that there is a reasonable prospect of success, and that my case is almost synonymous with theirs. This is in terms of the agency aspect, and that the agent that completed the returns was not actually engaged by me. 

 

The amount of people who have now been affected by an EIS type fraud is prolific and I have been told that 1 officer has oversight of over 200 of these cases. Indeed there are other cases where they have not been struck out and have been successful in getting to Tribunal. 

[slick132]

I asked Schipoo to post this but I'm working on a further draft right now ............

 

........... which I'll post later.

[slick132]

FIRST TIER TRIBUNAL                                                                         CASE NO:

TAX CHAMBER

 

BETWEEN

[YOUR NAME] (Appellant)

 

-and-

 

THE COMMISSIONERS FOR

HER MAJESTY’S REVENUE AND CUSTOMS (Respondent)

 

APPLICATION FOR PROCEEDINGS TO BE REINSTATED

AFTER STRIKE OUT ON 22^nd April 2022

 

1. I make this submission in response to the decision to Strike Out the proceedings made on 22^nd April 2022 by Judge Robin Vos.

 

2. I initially spoke to Alan Maxwell of Maxwells Accountancy Services and he suggested he would be able to help me reclaim tax.

 

3. I gave Mr Maxwell information as requested unaware that this would be used unlawfully to defraud HMRC and myself.

 

4. I understand the 3 tax returns (2017/18; 2018/19 & 2019/20) were submitted to HMRC by Fast Tax Rebates Ltd, a separate company run by director Alan Francis O’Hara.

 

5. Throughout these proceedings reference has been made to Maxwells/FTR but it is important to note that these are 2 separate companies.

 

6. I never knew about FTR Ltd until after they paid me tax refunds and I never gave them authority to act on my behalf. I therefore suggest the following legislation applies :-

 

7.  Statutory Instrument 2003, No. 282, PART 3, Regulation 8 - Any information delivered by an approved method of electronic communications on behalf of any person shall be deemed to have been delivered by him unless he proves that it was delivered without his knowledge or connivance.

 

8. The tax returns prepared by FTR Ltd were submitted without my knowledge or consent.

 

9. The £66,000 EIS relief claimed was for monies allegedly invested in Cryoblast Solutions Ltd, a company also set up by director Alan Francis O’Hara.

 

10. HMRC failed to reply to my specific questions about Cryoblast Solutions Ltd, namely :-

 

a)      If any certificates were lodged on my behalf in support of the EIS relief claimed.

b)     If HMRC ever approved Cryoblast as a recognised EIS investment.

c)      HMRC acted rashly in allowing EIS relief with no proof of investment in a company not approved as an EIS scheme.

 

11. I draw attention to 2 other Tribunal case rulings made in April 2022 regarding the same type of fraudulently claimed EIS relief.

12. McCumiskey v HMRC (12^th April 2022) in which the Appellant’s appeal against discovery assessments was allowed. The Ruling noted it was unlikely the Appellant was in a position to make large investments in an EIS scheme, given his modest income.

 

13. Huntley V HMRC allowed the Applicant’s late appeal against discovery assessments, allowing him to join group litigation action with 9 other Appellants. This group action concerns fraudulent EIS claims made in circumstances very similar to my own, where little regard was made by HMRC as to the taxpayer’s ability to invest large sums in risky EIS schemes.

 

14. I am grateful to Judge Vos for his comments in para. 12 of his Ruling on 22^nd April. If this Application is successful I have already spoken to the tax advisory firm acting for Huntley and others to see if I may join the group litigation.

 

15. I am grateful to the FTT for considering this Application.

 

 

Statement of Truth - I believe the facts stated in this Application are true.

 

 

Signed ________________

 

[Printed Schipoo full name]

 

Date: xx May 2022

[slick132]

Hi Schipoo,

 

Please check the above carefully checking for typos and accuracy.

 

If happy with it, File and Serve to the Tribunal and to HMRC respectively.

[honeybee13]

I think it reads really well, Slick, brilliant work.

 

Being pedantic [you know me], at the top of your document, appellant is spelled with one L. And I think it's respondent rather than respondant but I could be wrong.

 

HB

[slick132]

Thanks HB, edited.

 

Two Pedantic Peas in a Pod, that's us !

[honeybee13]

 

HB

[Schipoo]

Hi all, response from HMRC today

 

Good Afternoon

 

HMRC refer to the Tribunal letter of 22 June 2022.

 

HMRC have no objection to the appeal being reinstated.

 

Attached is a copy of the email the Appellant submitted to HMRC on 17 March 2022.

 

HMRC await case management directions.

[honeybee13]

That sounds like good news, Schipoo. Slick's letter seems to have worked.

 

 

HB

[dx100uk]

Good development

 

Dx

[slick132]

Hi Schipoo,

 

Let us know when further Directions are made by the Tribunal Judge.

[honeybee13]

Hi.

 

If you haven't already, could you tell us about the tax advisory firm please?

 

HB

[slick132]

Hi Brad,

 

Para 14 relates specifically to Schipoo's case so you omit that but use para 15, ne-numbered to 14, of course.

 

Just make sure all that you use is relevant to YOUR case and not simply copied from other threads.

[Schipoo]

I’ve had a bill from HMRC showing that they are billing me interest at £1.68 per day!!

[slick132]

Hi Schipoo,

 

Given the amount of tax that was repaid as a result of the EIS claim (almost £17,000), I'm surprised it's not double that amount per day.

 

This is a risk you take in not paying anything back yet. In the grand scheme of things, the accruing daily interest is a minor factor.

[Schipoo]

I received this today….

 

Reinstatement Decision 26.7.22.pdf

[slick132]

Hi Schipoo,

 

In my penultimate post on 18th May, I said - "File and Serve to the Tribunal and to HMRC respectively. Did you send your submission to HMCTS and to HMRC, or only the latter ? 

 

Or do these Directions refer to your submission to HMRC (but not HMCTS) on 17th March ?

 

In any event, this is good news, albeit pretty late.

[Schipoo]

 

Or do these Directions refer to your submission to HMRC (but not HMCTS) on 17th March ?
 

the above 

[honeybee13]

Sorry; Schipoo, I don't follow what you're saying. Which is it please?

 

HB

[Schipoo]

It’s the latter…

 

Hi Schipoo,

 

In my post penultimate post on 18th May, I said - "File and Serve to the Tribunal and to HMRC respectively. Did you send your submission to HMCTS and to HMRC, or only the latter ? 

 

Or do these Directions refer to your submission to HMRC (but not HMCTS) on 17th March ?

[honeybee13]

So you sent it to HMRC but not to the tribunal, just so we're sure?

 

HB

[Schipoo]

Yes, but they are aware of that because I put it in my response in May and they confirmed it in their direction yesterday 

[slick132]

Hi Schipoo,

 

You're pretty lucky with the judges decision. For future reference, any submission to the court/tribunal or to HMRC should always be copied to the other side at the same time.

[Schipoo]

In light of Dixons update on his thread, does this mean that I am now further ahead in the process now?