Tax advisers trust scheme blocked
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11 June 2013 HM Revenue & Customs
A tax avoidance scheme which routed profits of a tax advisory
business through employee benefit trusts has been closed by a tribunal.
The scheme was operated by tax advisor John Dryburgh. The Tribunal
said: “There is no doubt that Mr Dryburghnot only lied to the Tribunal
in a material way, but he appeared also to have fabricated evidence,
forged documents and thrown away a memory stick in order to destroy
HM Revenue and Customs (HMRC) challenged tax deductions of almost £9
million which Mr Dryburgh’s companies, Scotts Atlantic Management Ltd
and Scotts Film Management Ltd, paid into Employee Benefit Trusts. The
payments came out of profits earned by selling tax avoidance film
schemes. The tribunal decision, which denied the claimed deduction, has
protected £2.4 million of tax.
Although Mr Dryburgh is in bankruptcy and Scotts Atlantic Management is
in liquidation, HMRC believes that the cash can be recovered.
The Exchequer Secretary to the Treasury, David Gauke, said:
“This scheme – like so many others – was not worth buying into. The
Government has made almost £1 billion available to HMRC to tackle the
issues of avoidance and evasion and to ensure that the minority who try
to avoid their responsibilities pay the tax due.
“HMRC will always challenge this type of planning and the tribunal
decision should send a clear message to anyone thinking they can get
away with tax dodging – HMRC will pursue you and you will have to pay
the tax due as well as interest, on top of the promoter’s fees.”
1. The tax avoidance involved trying to extract profits from companies
while at the same time securing corporation tax deductions. Employers
paid money into an Employee Benefit Trust (EBT) and claimed corporation
tax deductions. The EBT gave undervalued shares in a new company,
causing a loss to the employer.
2. The case was listed as Scotts Atlantic Management Limited (in
members’ voluntary liquidation), Scotts Film Management Limited and
John Dryburgh (in bankruptcy) v CRC  UKFTT 299 (TC): http://www.financeandtaxtribunals.gov.uk/Aspx/view.aspx?id=7216
3. HMRC has protected over £1 billion since the beginning of
in a series of successful challenges to tax avoidance schemes at the
First Tier Tribunal and Supreme Court:
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Article Published/Sorted/Amended on Scopulus 2013-06-23 11:37:35 in Tax Articles
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