Out-Law News 1 min. read
04 Dec 2012, 4:52 pm
The statement said that the settlement opportunity would offer "a good deal to the Exchequer" and that HM Revenue & Customs (HMRC) would proceed more quickly to litigation for those cases that are not settled. Details of the settlement opportunity are expected following tomorrow's Autumn Statement by the Chancellor.
George Gillham, a tax expert at Pinsent Masons, the law firm behind Out-law.com, commented: "Many taxpayers were assured by their financial advisers that investments- such as film partnerships- which might generate either a profit or partnership losses were straightforward. They were not."
"The announcement of a settlement opportunity in relation to such investments will be a relief to many who invested in good faith, relying on trusted advisers, and later found themselves embroiled in expensive and time consuming disputes with the tax man," said Gillham. "Those taxpayers to whom the settlement opportunity is not offered should consult their lawyers."
In April, a tax tribunal ruled in favour of HMRC in a case concerning a film partnership, Eclipse 35, set up by Future Capital Partners. The tribunal found that the partnership existed primarily for the purposes of avoiding tax and ruled that tax relief was not available for the investors. Many high earners, including a number of celebrities, had invested in the partnership. Litigation is ongoing in respect of several other film finance partnerships.
HMRC's settlement opportunities usually involve an opportunity for taxpayers to settle outstanding issues without having recourse to litigation. Last year HMRC launched a settlement opportunity for users of employee benefit trusts.
On Thursday representatives from several of the organisations who set up some of the film partnerships are appearing before the Public Accounts Committee along with representatives of HMRC.