Re: deception due to less tax submission?????

[Romeo007]

Please refer the below paragraph from UKBA website.
''whether the business from which the earnings are claimed can be shown to exist and be lawfully and genuinely trading;
verification of previous earnings claims with declarations made in respect of the applicant to other Government Departments, including declarations made in respect of earnings claimed by the applicant in previous applications''

Which says they will check the previously claimed earnings and match it with your record at HMRC whether the same amount is filed for tax purposes. If not ,it will come under ''deception'' according to my knowledge.

My bad, Im new here.

But would like to make this thread active as few of my friends who are going apply for ILR are concerned about this topic too. They applied to Home Office with salaried and self-employment and showed 40K when they did the self-assessment they showed a different amount to avoid the tax to HMRC. Luckily they got the Tier-1 Extension , but now they are nervous because when they go for ILR Home Office might check their previous records and reject them for faking the income and claiming points.

[CR001]

There are other more recent threads regarding ILR and refusals on this issue. If you have specific questions, or your friends do, it would be best to start your own or their own topics.

I have split your post from where you posted it for you.

[CR001]

HO do check the HMRC records for ILR applications.

Read through these two threads, they are the most recent ILR refusals based on Tier 1

http://www.immigrationboards.com/indefi ... 85617.html

http://www.immigrationboards.com/uk-tie ... 85514.html

[Romeo007]

Noted thanks CR001,

Well few of my friends did applied for Tier-1 General in 2011 and claimed Salary+Self-employment for income and again in 2013 they did the same format and got the extension as well.
But in the both cases they haven't paid the tax on the exact amount they claimed to HO.They amended the amount and claimed a different income on self assessment and paid less tax . So when they go for ILR in 2016 they may have a chance of their application rejected due to deception? so what are the chances they got to avoid the rejection?
Can they amend tax on HMRC and pay the exact amount and get away. If yes, whether we can amend a tax return after 5 years at HMRC?

Thanks in advance

[hellonewhere]

Noted thanks CR001,

Well few of my friends did applied for Tier-1 General in 2011 and claimed Salary+Self-employment for income and again in 2013 they did the same format and got the extension as well.
But in the both cases they haven't paid the tax on the exact amount they claimed to HO.They amended the amount and claimed a different income on self assessment and paid less tax . So when they go for ILR in 2016 they may have a chance of their application rejected due to deception? so what are the chances they got to avoid the rejection?
Can they amend tax on HMRC and pay the exact amount and get away. If yes, whether we can amend a tax return after 5 years at HMRC?

Thanks in advance

This is such a blatant abuse of the HMRC's policy to allow people the chance to amend a tax return later.

To answer your question and put things in perspective, there is a system of penalties for mistakes on your tax return, depending on whether HMRC thinks you have been careless or have tried to mislead them.

Penalties are based on the amount of tax you owe, and are payable in addition to the tax owed.

If you have taken reasonable care to fill in your return correctly, you’ll have no penalty to pay.
If you have been careless, the penalty will be between 0% and 30% of the extra tax owing.
If you have deliberately underestimated your tax, the penalty is between 20% and 70%.
If you have deliberately underestimated your tax and attempted to conceal the fact, the penalty will be between 30% and 100%.

There is also a daily penalty for very late filing.

Also, don't forget, deliberating misleading HMRC can lead to a prosecution.

Having sat through a few tax inspections from HMRC with clients myself, I can confirm that HMRC does prosecute people for deliberating misleading them.

Very soon, HMRC will scrap this policy of amending tax returns and it could lead to a significant number of genuine taxpayers suffering.

Instead of immigration advices, maybe it's best to consult a solicitor who specialises in tax laws because deliberately misleading HMRC on top of the HO is pretty silly.

[jayacpr]

Following ...

[akan]

You can amend the tax anytime , HMRC is not interested in your immigration status , they need their money. Accountants do make mistakes and file incorrect tax returns making false promises to clients. People from Engineering, medicine or law background have no clue what tax means therefore they rely on accountant words.

[CR001]

HMRC is not interested in your immigration status

Perhaps not, but I can assure you that HO certainly is interested in your income and taxes and that they have been declared and paid accurately in the past.

[akan]

Please refer the below paragraph from UKBA website.
''whether the business from which the earnings are claimed can be shown to exist and be lawfully and genuinely trading;
verification of previous earnings claims with declarations made in respect of the applicant to other Government Departments, including declarations made in respect of earnings claimed by the applicant in previous applications''

Which says they will check the previously claimed earnings and match it with your record at HMRC whether the same amount is filed for tax purposes. If not ,it will come under ''deception'' according to my knowledge.

My bad, Im new here.

But would like to make this thread active as few of my friends who are going apply for ILR are concerned about this topic too. They applied to Home Office with salaried and self-employment and showed 40K when they did the self-assessment they showed a different amount to avoid the tax to HMRC. Luckily they got the Tier-1 Extension , but now they are nervous because when they go for ILR Home Office might check their previous records and reject them for faking the income and claiming points.

If you haven't declare your taxes correctly in Past , do it NOW .... and get your paperwork in right order and get yourself out of this misery.

[hellonewhere]

Please refer the below paragraph from UKBA website.
''whether the business from which the earnings are claimed can be shown to exist and be lawfully and genuinely trading;
verification of previous earnings claims with declarations made in respect of the applicant to other Government Departments, including declarations made in respect of earnings claimed by the applicant in previous applications''

Which says they will check the previously claimed earnings and match it with your record at HMRC whether the same amount is filed for tax purposes. If not ,it will come under ''deception'' according to my knowledge.

My bad, Im new here.

But would like to make this thread active as few of my friends who are going apply for ILR are concerned about this topic too. They applied to Home Office with salaried and self-employment and showed 40K when they did the self-assessment they showed a different amount to avoid the tax to HMRC. Luckily they got the Tier-1 Extension , but now they are nervous because when they go for ILR Home Office might check their previous records and reject them for faking the income and claiming points.

@Akan - the OP clearly stated the intention to avoid paying the correct amount of tax, hence, surely it's not a mistake?

Also, the whole idea of showing a different amount to HO, means it wasn't a genuine income?

Yes mistakes happens with everyone and that's why HMRC doesn't impose penalties for genuine mistakes but tax avoidance and the creation of false earnings with a sole view to gain advantage with another govt body is unlawful.

People used to file tax returns with inflated income just to get a mortgage. And lower the stated earnings after the mortgage is approved and pay less tax. Now mortgage companies have caught up to this trick and even after approving the mortgages, they carry out a search with HMRC a year later. And these people get penalised for mortgage fraud. It's a new pilot scheme which the govt brought in the last year or so.

So it's not just HO who go back and check previous records, it's any institution with whom a tax return is used for financial purposes.

[Romeo007]

Hi guys thanks for the valuable advice , but It's common that doctors and accountants are there to keep the patients and clients in tense situation. Being honest nobody likes to pay tax even the big cooperate companies like Tesco , Amazon Starbucks do fiddle with tax , whether it is genuine income or not, all are in the same boat. So lets us please talk about solutions rather than being Mr.Right.

[honey2008]

Dear All,

Difference Between Tesco,Amazon, Starbucks and common applicant like us is that they have Money & Influence to tackle court cases and if they loose this will hardly changes their balance sheet WHEREAS if we loose the case , I think we are wise enough to understand the consequences!!!

So we should be practical and keep up with realities....


The real solution is to keep all your tax affairs in ORDER as advised by senior members of this forum so many times instead of becoming JAMES BOND after refusal and fighting the appeals ALONE..

Rest is applicants wisdom..

Regards
Honey

[hellonewhere]

Hi guys thanks for the valuable advice , but It's common that doctors and accountants are there to keep the patients and clients in tense situation. Being honest nobody likes to pay tax even the big cooperate companies like Tesco , Amazon Starbucks do fiddle with tax , whether it is genuine income or not, all are in the same boat. So lets us please talk about solutions rather than being Mr.Right.

Contact HMRC to come to an arrangement with them. I am sure you will get credit for approaching them first, rather them finding out from HO.

Also, please consult with a solicitor who deals with tax laws as well as a chartered tax accountant.

[Romeo007]

Thanks hellonewhere, but the problem here in ILR applications are that there is no appealing rights even its rejected for wrong reasons , the candidate has to suffer. So paying all the tax doesn't mean that we will get the ILR, again if government changes and new rules brought to tighten ppl going to ILR will be more risky too.. But at the moment the solution would be to pay the tax ..fingers crossed let's see how the situation will be in 2016

[hellonewhere]

Thanks hellonewhere, but the problem here in ILR applications are that there is no appealing rights even its rejected for wrong reasons , the candidate has to suffer. So paying all the tax doesn't mean that we will get the ILR, again if government changes and new rules brought to tighten ppl going to ILR will be more risky too.. But at the moment the solution would be to pay the tax ..fingers crossed let's see how the situation will be in 2016

At least by paying what was truly owed, you can rest assured from the fear that you will not be prosecuted and don't end up with a criminal record. I am not entirely sure how HMRC will deal with it, however, you will be given credit for coming forward.

I am not sure how HO will deal with it.

And it's not about the govt nor new rules; it's about being honest in your dealings and abiding by the laws of whichever country in the world you live in; why take a gamble and risks your stay in the country just to save a few thousands pounds?, by now if you have to pay back, with penalties and all, it will cost you almost double; what's the point; in the end you didn't save anything, you will end up paying more, risking everything and a big headache in your head.

I am sorry for your troubles, I hope you can get it sorted out.