This feed is published daily with selected new or updated
content from across the Lowtax Network. For a list of Lowtax Network
sites, many of which feature daily news, see
below.
Providing essential tax news and information
for globally mobile artists, contractors, entrepreneurs, professionals,
small businesses, sportspersons and entertainers.
Lowtax Portal:
'Low-tax' business and investment in the top 50 jurisdictions covered in
exceptional detail.
Tax News: Global
tax news, continuously updated through the day.
Investors Offshore:
The independent offshore and alternative investment guide for expatriates
and the globally aware investor.
Law & Tax
News: Daily news and background data on tax and legal developments
for international business.
Offshore-e-com:
A topical guide to offshore e-commerce focused on tax and regulation.
Lowtax Library:
One of the web's largest and most authoritative business and investment
information sources.
US Tax Network:
The resource for free online US taxation information, covering: corporate
tax, individual tax, international tax, expatriates, sales and e-commerce
tax, investment tax.
NEW! Personal
Business Tax Guide: Providing essential tax news and information
on business for contractors, entrepreneurs, professionals, small businesses,
artists, sportspersons and entertainers.
HMRC Responsible For More Companies Being Wound Up, Says UHY,
by Jason Gorringe, Tax-News.com, London
Wednesday, December 19, 2007
Her Majesty’s Revenue & Customs (HMRC) is taking an increasingly aggressive
stance against businesses which fall behind with tax payments, and is now responsible
for 60% of petitions to wind up companies, up from 58% last year and just 42%
in 2001, according to research from a panel of experts at accounting firm UHY
Hacker Young.
The research suggests that HMRC is taking an increasingly hawkish approach
towards businesses that owe it tax or national insurance contributions.
Experts at the firm say that since HMRC lost its status as a preferred creditor
in 2003, it has been quicker to close down companies who have fallen behind
with payments. Preferred creditor status gave HMRC access to the assets of an
insolvent business ahead of other creditors.
Edward Cook, Partner at our Manchester office commented:
“HMRC is now clamping down on companies who have fallen behind with payments
much earlier and more frequently. They want their money and if this means jobs
have to be lost then so be it.”
“Whilst companies will generally have built up a good working relationship
with their other creditors that will allow them to negotiate a standstill on
payments it is now almost impossible for them to establish that kind of relationship
with the taxman."
“HMRC won’t show any hesitation in pulling the plug if it thinks
a company won’t be able to repay them," he concluded.
However, the panel argued that creditors can expect to receive far less for
the business assets of a company forced into compulsory liquidation than if
the company had been wound up voluntarily, or had entered administration with
a pre-pack sale of the business as a going concern.
According to Edward Cook:
“Forcing a company into compulsory liquidation should be the very last
resort. In our experience creditors can generally recover a higher proportion
of the money owed to them if they can come to an agreement with the Directors,
or if they can persuade the Directors to sell the business as a going concern
usually through Administration."
“It may seem obvious but allowing a business to continue to trade and
giving an Administrator time to market a business as a going concern will mean
that potential buyers will value the business more highly. These figures suggest
that HMRC is often too quick off the mark to wind up a business.”
Mr Cook concluded by recommending that if a company does fall behind on its
tax or VAT payments, it should act quickly to negotiate an affordable repayment
plan with HMRC.
“Company Directors who can’t come to a workable agreement with
the taxman, or who break the terms of an agreement will find that HMRC will
be very quick to push the button on their business,” he concluded.
One of the web's largest and
most authoritative business and investment information sources. Alongside
topical, daily news on worldwide
tax developments, you can receive weekly newswires or
access up-to-date intelligence
reports on a range of legal, tax and investment subjects.
Our 16 constantly updated
intelligence reports cover every important aspect of 'offshore' and international
tax-planning in depth, including banking secrecy, the EU's savings tax
directive, offshore funds, e-commerce, offshore gaming and transfer pricing.
Reports are available for immediate downloading or as subscription
services with news pages.
Advertising & Marketing
With over 50,000 qualified readers every month our web-sites
offer a number of cost effective, targeted advertising,
sponsorship and marketing opportunities:
Display advertising - from 'skyscrapers' to 'buttons'
Content/article submission and sponsorship
Opt-in email marketing
On-line Services Directory listings
Could your corporate web-site or newsletter benefit
from incorporating regularly updated news and content
tailored to serve your clients' interests? We can provide
a variety of maintenance-free news and content solutions
that can be seamlessly integrated and dynamically delivered:
Click here for a brief introduction
to RSS and instructions on how to get the Tax-News feed.
IMPORTANT NOTICE: THE LOWTAX NETWORK has
taken reasonable care in sourcing and presenting the information contained on
this site, but accepts no responsibility for any financial or other loss or damage
that may result from its use. In particular, users of the site are advised to
take appropriate professional advice before committing themselves to involvement
in offshore jurisdictions, offshore trusts or offshore investments. All materials
on this site copyright THE LOWTAX NETWORK 1999 to 2010. Contact
us for further information.
TAX-NEWS.COM
Free Tax-News Feed