HMRC's view on person of good behaviour - 322 (5)

[teddy0409]

Dear Applicants,
Earlier last week, I requested HMRC about their view on 'What is a person of good behaviour and character' in HMRC's point of view with regarding to tax returns (Late filing/Amendment).
I have received the following information via email from HMRC,

Ref: Compliance checks series – CC/FS11
HMRC
_______

Determining our view of the ‘behaviour’
When there is a failure to notify, we will work with you to find out what caused it. We refer to this as the
‘behaviour’. The type of behaviour will affect whether we charge you a penalty and the amount of the
penalty. The 3 different types of behaviour are described below.

Non-deliberate
This is where you failed to tell us about a circumstance that affected your liability to tax within the relevant
time limit, but the failure was not deliberate or deliberate and concealed.

Deliberate but not concealed
This is where you knew that you should have told us about a circumstance that affected your liability to tax
within the relevant time limit, but you chose not to tell us.

Deliberate and concealed
This is where you knew that you should have told us about a circumstance that affected your liability to tax
within the relevant time limit, but you chose not to tell us. As well as choosing not to tell us, you also took
active steps to hide the failure to notify from us
____________

Our Solicitor have notified this in our AR and sent yesterday to Home Office,
Hope this information helps for anyone who is trying to clear the 322 (5) Person of good character and behaviour comment (at AR or JR) from Home Office for tax issues,

Kind Regards,
Anan

[devdl]

Thx
Doing a very Gd job for everybody .

[rocktheparty]

Dear Applicants,
Earlier last week, I requested HMRC about their view on 'What is a person of good behaviour and character' in HMRC's point of view with regarding to tax returns (Late filing/Amendment).
I have received the following information via email from HMRC,

Ref: Compliance checks series – CC/FS11

Kind Regards,
Anan

Hi mate
But the question is what if HO says 'this is deliberate'.

[jibon]

teddy0409
You have done good job and helping others by sharing.

[teddy0409]

Dear Rocktheparty,
In the refusal, Homeoffice could say a late submission 'As deliberate' with in the immigration rules or non-mandatory/dicreationary 322(5), In HO point of view that is right, As they expect the applicants to pay the qualifying years tax affairs with in the tax year, But actual businesses will have different gear due to various surrounding factors, If we could prove our actual reason in AR or in JR that we are not deliberate in delaying or hiding the tax returns then we have a higher rate of winning the case. Remember HO's application of immigration rules are challengable in JR if it overrides HMRC's policy guidence...
Regards

[rocktheparty]

Dear Rocktheparty,
In the refusal, Homeoffice could say a late submission 'As deliberate' with in the immigration rules or non-mandatory/dicreationary 322(5), In HO point of view that is right, As they expect the applicants to pay the qualifying years tax affairs with in the tax year, But actual businesses will have different gear due to various surrounding factors, If we could prove our actual reason in AR or in JR that we are not deliberate in delaying or hiding the tax returns then we have a higher rate of winning the case. Remember HO's application of immigration rules are challengable in JR if it overrides HMRC's policy guidence...
Regards

Hi teddy0409
I agree mate. Is it possible (for people who have done amendments) to get their case discussed with HMRC asking which category(deliberate etc) HMRC considers amendments falls in? Because if HMRC says it's not deliberate, I think an applicant will have much stronger case.

[teddy0409]

Dear Rocktheparty,
I found the following information from a reputed Charted Accountant Firm who is ESTD. since 1865,

Late Registration Penalty (700/41) and Misdeclaration Penalty and Repeated Misdeclaration (700/42)

HMRC have announced updated versions of the above VAT Notices. The Late Registration penalty has been replaced by a new failure to notify penalty for obligations to notify liability to be registered on or after 1 April 2010. The penalty varies between 0% and 100% and is determined by whether HMRC were prompted or unprompted.

In addition the following “behaviour” factors are taken into consideration, the definitions below are taken from HMRC

Non-deliberate
This is where you failed to tell us about a circumstance that affected your liability to tax within the relevant
time limit, but the failure was not deliberate or deliberate and concealed.

Unprompted tax amendment (Voluntary disclosure of amended tax) will fall under Non-deliberate category,
Please consult your accountant for further clarification. Please note, this does not guarantee to change the outcome of the refusal but will have a significant impact,

Kind Regards,
Anan

[ouflak1]

I wonder if the moderators would consider making this a sticky thread?

[wahabishtiaq]

Thats a great piece of work you shared. I am also victim of 322(5) and going to apply AR in next couple of days.

It will be good to hear if anyone has a success on AR or JR with similar cases?

[ohara]

Thats a great piece of work you shared. I am also victim of 322(5) and going to apply AR in next couple of days.

Did you pay your tax on time and in full

I fail to see how attempted tax evasion makes you a victim of anything.

[teddy0409]

Dear Ohara,
Hope you are doing fine and appreciate your time in our forum, late filing or amendment with a valid reason for delay is not classified as 'Attempted Tax Evasion',
It is unfortunate for a senior member like yourself to use this term, Having said that, If a person knowingly delaying or avoiding to submit a tax return could not fall under 'Victim' category
Kind Regards,
Anan

[ohara]

You only need to look through the Tier1/ILR forums to see the sheer amount of threads asking for help with tax returns / deception issues to understand why it is frustrating when these keep coming up.

http://www.immigrationboards.com/search ... +deception

[Casa]

The widespread abuse has resulted in the closure of the Tier1 General route.

[teddy0409]

Dear Casa and Ohara,
Yes, I do see your point, Take care

[noajthan]

HMRC has no jurisdiction over HO and/or Immigration Regulations regardless of HMRC's view on tax evasion, tax avoidance, tax deception & etc.