Finance (No.2) Bill

Written evidence submitted by Peter Lamberti (FB12)

Finance Bill No. 2

Dear Sir / Madam,

I am writing to you in regards to the finance bill No. 2 that is due to be discussed by the Public Bill committee, specifically with regards to Clause 11 and Schedule 1 of said bill.

This section is known as the '2019 loan charge' and is intended to introduce a tax on those who have outstanding loans from EBTs, etc. which HMRC have not LEGALLY been able to challenge in the courts and made 'illegal' in 2012 via the finance bill.

However, this bill introduces this loan charge in retrospect for any loan outstanding for any EBT contributions prior to 2012 which in my opinion is a gross miscarriage of justice (for want of a better legal term) and is an abuse of power of HMRC and the Government based on the facts as they stand :

- EBTs, etc. were not illegal pre-2012

- HMRC has failed to challenge these schemes

- HMRC were aware of these schemes, their promotion, etc. and DID NOTHING for years

- HMRC have now realised their mistakes and are changing the law to cover their own failings

This bill, or this section of the bill, should not be allowed to pass into law - as above it is an abuse of their powers and is being done to cover their own failings and surely this is the bigger problem and yet another example of an organisation that cannot effectively police its own rulebook or dare I say does not fully understand its own rulebook so it can collect taxes effectively - it's a broken organisation and a broken tax system.

This loan charge will push thousands of people into bankruptcy, hardship and no doubt will lead to broken families by way of divorce and I pray it does not lead people to taking their own lives but reading some of the stories on some of the forums that deal with these concerns this is possible.

This should not be allowed to happen and cannot be allowed to happen.  Change the law to make these schemes illegal, yes but not retrospectively - this is unjust, unfair and should not be allowed and whilst people may say it is wrong for people not to pay their "fair share" or "morally reprehensible" people need to remember that the law and HMRCs own 'rules' allow for this to happen legally and whilst it may be viewed as avoidance, this is not illegal so therefore people are legally paying their fair share no matter what the moral position - IT IS / WAS 100% LEGAL AT THE TIME AND SHOULD NOT BE DEEMED ILLEGAL RETROSPECTIVELY !!!!!!!!

Thank you for your consideration and I am happy to discuss further.

January 2018


Prepared 10th January 2018