{"id":4488,"date":"2018-06-14T14:08:47","date_gmt":"2018-06-14T14:08:47","guid":{"rendered":"https:\/\/www.openbusinesscouncil.org\/?p=4488"},"modified":"2021-07-07T07:15:24","modified_gmt":"2021-07-07T07:15:24","slug":"advice-small-business-owners-concerned-tax-avoidance","status":"publish","type":"post","link":"https:\/\/www.footballthink.com\/advice-small-business-owners-concerned-tax-avoidance\/","title":{"rendered":"Advice For Small Business Owners Concerned About Tax Avoidance"},"content":{"rendered":"
\"Advice
Advice For Small Business Owners Concerned About Tax Avoidance<\/figcaption><\/figure>\n

The first thing for small business owners to understand about tax avoidance is that it\u2019s something HMRC takes extremely seriously.<\/p>\n

Specifically, in the last two years they\u2019ve been successful in winning 90% of tax avoidance cases that have gone before the courts.<\/p>\n

In the recent Cyclops Electrics case, Penny Ciniewicz, Director General of HMRC\u2019s Customer Compliance Group, said: \u201cWe cannot allow tax avoidance schemes like these to deprive the UK of vital revenue. The money we\u2019ve protected in this case alone would be enough to pay the annual salaries of around 2,400 newly qualified teachers.<\/p>\n

\u201cThe honest majority of people who pay their taxes shouldn\u2019t have to carry the burden of paying for the public services we need.\u201d<\/p>\n

With that in mind, it\u2019s so important small businesses have complete clarity when it comes to the issue of tax avoidance.<\/p>\n

Solutions Loans are helping tackle this issue with the creation of a detailed guide<\/a> as to what businesses should look for when it comes to tax avoidance.<\/p>\n

They\u2019ve highlighted eight things to be aware of when analysing their own affairs, which include:<\/p>\n

    \n
  1. If it is complex and involves multiple transactions purely for the reasons of avoiding tax<\/li>\n
  2. If it sounds too good to be true (i.e. for no real effort or reason you avoid paying tax)<\/li>\n
  3. There is no real economic activity or risk involved (such as an investment)<\/li>\n
  4. The scheme consists of money going around in a circle through other businesses or intermediaries<\/li>\n
  5. A third party or\u00a0the scheme\u2019s promoter\u00a0provides funds to make the scheme work<\/li>\n
  6. Known tax havens are involved<\/li>\n
  7. Offshore companies are involved (or offshore trusts)<\/li>\n
  8. There are confidentiality requirements<\/li>\n<\/ol>\n

    While it\u2019s important for businesses to know the kinds of things they should be looking out for, Solution Loans have also provided more detailed information on three types of schemes that have been deemed tax avoidance.<\/p>\n

    They include the following:<\/p>\n