Investors Seek to Challenge HMRC over (APNs)

Alleged investors in a film tax avoidance scheme are set to challenge HMRC over the use of Accelerated Payment Notices (APNs).

The individuals are seeking a judicial review against the use of APNs. They are also hoping to have the terms of the APNs, through which HMRC seek to reclaim disputed unpaid tax upfront, suspended until their legal challenge is heard.

A number of individuals who are alleged to have invested in tax avoidance schemes promoted by Ingenious Films are reported to be the first batch of people to receive APNs from HMRC over unpaid tax. HMRC identified three tax avoidance schemes promoted by Ingenious, namely – Ingenious Film Partners 2, Ingenious Games and Inside Track Productions.

Under Accelerated Payment Notices (APNs) HMRC demands full repayment of the alleged amount of tax it believes has been avoided. The amounts can range from a few thousand to millions of pounds in the most extreme cases.

The legal challenge is being brought on the grounds that the APNs are illegal and unreasonable, with some commentators noting that this is the only option for investors to pursue. Solicitors for the claimants may also seek to challenge whether HMRC has stayed within procedural guidelines.

HMRC has already declared its intentions to continue to use Accelerated Payment Notices (APNs).

For those who have invested in a tax avoidance scheme, it is highly possible that you will be targeted by HMRC with the request of repaying any disputed tax within 90 days.

To discuss your position in complete confidence with experienced tax investigations and disclosures professionals contact us on 0113 387 5670 or fill out an Enquiry Form and we’ll get back to you.