RegulationJun 11 2013

Tax adviser’s avoidance scheme smashed by tribunal

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A tax avoidance scheme which diverted the profits of a tax advisory business through employee benefit trusts has been closed by a tribunal.

The scheme was operated by tax adviser John Dryburgh of Scotts Atlantic Management. Mr Dryburgh is in bankruptcy and the company is in liquidation.

Nevertheless HM Revenue and Customs believes money may still be recovered.

The tribunal said: “There is no doubt that Mr Dryburgh not only lied to the tribunal in a material way, but he appeared also to have fabricated evidence, forged documents and thrown away a memory stick in order to destroy evidence.”

David Gauke, exchequer secretary to the Treasury, said: “This scheme, like so many others, was not worth buying into. The government has made almost £1bn available to HMRC to tackle the issues of avoidance and evasion and to ensure that the minority who try to avoid their responsibilities pay the tax due.

“HMRC will always challenge this type of planning and the tribunal decision should send a clear message to anyone thinking they can get away with tax dodging - HMRC will pursue you and you will have to pay the tax due as well as interest, on top of the promoter’s fees.”