It's been a while since the last post. I've been on holiday, and I've just taken on a new job at Accountancy Age, so it's been a bit hectic. And besides, I thought, you'll all be on holiday too, won't you?

Whilst we've all been away, I gather there has been some busy goings-on at HM Revenue & Customs. A bundle of memos reached me detailing various job moves at the tax authority.

David Garlick at the Large Business Service is retiring, which may not be news to many, being replaced by Melanie Dawes from the Treasury. Some say she may be a soft touch on business, in the wake of some fears from higher up (Whitehall people say figures as exalted as the Prime Minister even have been spooked by business complaints about the taxman).

John Keelty is to lead a programme of work looking at joint working between HMRC and the DWP, though more details on what this is haven't as yet come forward.

And there are a host of changes due to take from September. Here are a few of them:

Doug Tweddle establishes a Frontiers and International Directorate.

There is a new single Risk & Intelligence Directorate, led by Stuart Hartlib.

Naomi Ferguson is to become director of Local Compliance.

Geoff Lloyd, formerly director, central compliance, is to be director of Corporation Tax and VAT, being replaced by Mike Norgrove.

Theresa Middleton becomes head of the HMRC Agent and Adviser Unit which moves from Central compliance.

Apart from those, which are enough changes to be getting on with, the department is also putting the finishing touches to a 'Five Year Plan' and has Gershon to contend with too.

Its Gershon plans were partly covered by Private Eye recently, I'm told.

A story said that the department was cutting investigators, potentially forfeiting £240m in uncollected tax as a result.

I say they were partly covered because the department says that the memo the magazine saw was only one part of a broader picture - and that the investigators would be moved elsewhere where they would raise even more money.

August 31, 2006 | Permalink | Comments (0)

Both of the following articles are worth a look. Daniel Davies, a Guardian blogger and stockbroker, suggests that tax advisers might start getting their clients to pretend they're Plymouth Brethren to take advantage of the new Alternatively Secured Pensions rules.

Meanwhile, Irwin Stelzer argues that Warren Buffett's and Bill Gates' philanthropy is really just one great big inheritance tax dodge that enables their descendants to retain power and patronage for generations, free of tax.

August 3, 2006 | Permalink | Comments (0)

I've been criticised for saying unpleasant things about the NatWest Three (like they should be punished if they're guilty, an astonishing suggestion, I think you'll agree). But I'm holding my line that the Americans deal with white collar misbehaviour far more effectively than we do.

Fresh evidence has emerged this week with the Senate report on tax havens and tax abuses. Now I'm not suggesting that HM Revenue & Customs isn't doing a good job on avoidance, but our MPs rarely muster the combination of passion and investigative skill on the subject displayed here.

Those who know the background will remember that the Permanent Sub-Comittee on Investigations, which authored the report, is the same committee that delved into the issue a few years back, and whose remarkable study of avoidance then led to DoJ moves to possibly indict KPMG. They are also the committee that George Galloway came up against last year, but supporters of Gorgeous George should, in my opinion, not let that bother them.

They shouldn't let that bother them because the latest report is another masterpiece of forensic investigation.

The headline is in the first paragraph: 'Experts estimate that Americans now have more than $1 trillion in assets offshore2 and illegally evade between $40 and $70 billion in U.S. taxes each year through the use of offshore tax schemes.'

But the real joy of it is in the detail. Listen to this paragraph from one participant in what you can only describe as a shady offshore scheme:

'Mr. Johnson had tentatively decided to invest by December 20, 1999, when Mr. Scheinfeld emailed Mr. Wilk and Mr. Greenstein: “Joel [Latman] called, he has given us the full speed ahead (whatever than means) . . .” Mr. Greenstein asked in response “Are we firm on 100 or 200 [million dollars]?” and Mr. Wilk answered “$300MM; 150 for [redacted by Subcommittee] and 150 for Woody. Ain’t capitalism great!” On January 11, 2000, Chuck Wilk emailed Larry Scheinfeld “Well I guess congratulations are in order but boy do we have our work cut out for us now on POINT,” and Mr. Scheinfeld replied “Now I just hope Woody doesn’t get cold feet or have the IRS select his return for audit!”'

There, in all its glory, is the world of aggressive and dubious tax avoidance. Vast sums of money, and a clear realisation from those involved that what they are getting up to is barely legal. And the arrogance of that 'Ain't capitalism great?' line.

It looks like we are, at the very least, in for another bout of serious blood letting across the pond about the extraordinary activities of US tax practitioners.

August 3, 2006 | Permalink | Comments (0)