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Double Standards

Double Standards

Postby Slartibartfast » Fri Feb 21, 2014 11:29 pm

In a tribunal decision reported today (www.bbc.co.uk/newsbeat/26297943), it was found that a celebrity DJ had participated in a cynical and artificial 'scheme' to evade £1m of properly-due tax over several years. He had falsely represented himself to be a self-employed second-hand car dealer, when of course his income was almost entirely earned from his performance and broadcast activities. The celebrity DJ may now have to pay that £1m to HMRC.

In another case heard in another tribunal, a less famous man was found to have given false information to the Benefits Agency in a cynical and artificial claim for benefit payments he was not properly entitled to. Over the same period, this other man had obtained £50,000 of improper payments by not disclosing his income as a second-hand car dealer. Oddly, this other man cannot just pay the sum he falsely gained and walk away. He is shamed in the press as a cheating scrounger, and sent to prison for 9 months.
"Judicial tergiversation is not to be encouraged"
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Re: Double Standards

Postby Hairyloon » Fri Feb 21, 2014 11:46 pm

Is £50,000 perhaps a much bigger proportion of the benefits budget than £1,000,000 is of the income tax revenue?
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Re: Double Standards

Postby landlordnightmare » Sat Feb 22, 2014 12:05 am

I feel the orginal question is posed with insufficient detail for anybody, certainly me, to comment.

Just as an example - say (for example) the supposed DJ (I have no idea) was running his own company - and that company shrewdly invested that money into classic cars as a sensible investment for that company to do with its funds? That is a corporate decision on what to do with surplus cash - if it made a massive profit for the company - what is wrong with that?

I don't know the case - but I can possibly guess the DJ's name even before I research - If I have got it correct - before checking - he has always been a shrewd business man.

A business description registered at Companies House as being 'only part of the business' is difficult. They don't allow multiple descriptions, and to the best of my knowledge, unless relating to a highly regulated industry (e.g. banking/insurance - financial services, law etc) - highly unlikely to cause you a problem.

I am intrigued...
Note: I am not legally qualified, just been around a few blocks. The sorry cynic.
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Re: Double Standards

Postby landlordnightmare » Sat Feb 22, 2014 12:19 am

Oh - it wasn't the DJ I expected

but they might be friends.

From the limited reporting I have seen - I am even more intrigued. Just as a guess HMRC might be tripped up on appeal

I will now follow with interest....

[oh edit - this seems as much a 'tax thread' question as being here]
Note: I am not legally qualified, just been around a few blocks. The sorry cynic.
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Re: Double Standards

Postby atticus » Sat Feb 22, 2014 8:13 am

I agree that there *appears* to be a double standard.

However, said DJ appears to have believed that this idiotic scheme sold by advisers was lawful.

I do not know whether the fraudulent benefit claimant claimed to believe that what he was doing was lawful.

DJ's case was in a tax tribunal, the question being whether tax was payable. The other man's case was presumably a prosecution in a criminal court. Different outcomes sought in tribunals with different powers.




Those who wish to discuss the taxation question may open a new thread in that forum.
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