At least a rudimentary understanding of the UK tax framework may be
helpful when answering this question. The answers to this question
will be interesting to anybody with an interest in UK tax law /
practice.


A)

I am seeking adverse information about a tax avoidance scheme operated
under the brands `Kinsella Solutions`
(http://www.kinsellasolutions.com/) and `Tek Pay`
(http://www.tekpay.com/). These names are brands ? the companies are
in fact part of the same group (call the contact numbers ? speak to
the same person etc.).

I should emphasise that under United Kingdom law, tax avoidance is
legal ? though tax evasion is not.

The reason for my enquiry is to ensure the legitimacy of the scheme
offered, and the integrity of those operating it. I am considering
using one of these schemes.

To qualify adverse information:
Court cases against either of these companies ? or their operators -
by either members (former, or otherwise) of the the scheme(s);
Court cases against these companies, or scheme members, by HM Revenue
and Customs (http://www.hmrc.gov.uk);
Evidence of generally ?bad experiences? published by scheme members

I have purchased some information about Kinsella Solutions from the
companies house web site (http://www.companieshouse.gov.uk), and I can
provide this on request (contains names of directors etc.)

B)

A secondary question is about the statement on Kinsella Solutions
website, ?Issues resulting from the ?Dextra? case are dealt with?.

This relates to a case against Dextra Accessories and Employment
Benefit Trusts. I would like to know what measures Kinsella and TekPay
have taken to differentiate their schemes from this situation, and if
this reconciles with Inland Revenue accepted practice.

C)

Also, the 2004 Budget made it a legal requirement for tax avoidance
schemes to register with the Revenue ? is it possible to discover if
Kinsella/TekPay have done this, or are they not classed as avoidance
schemes?

I can provide documentation about how the scheme these companies sell
operates, if such information would be helpful.

A quick overview of the reason for using such schemes can be found at
http://www.ir35calc.co.uk

I'm not sure of the ins and outs of this company but I do know that
the Channel Islands are a tax haven.

On first glance the company look ok to me and seem ligitimate. It is a
known thing that people from the UK save their money or open up
businesses in the islands the same way as they do Switzerland.

whether this same scheme will work in the US is a different matter as
tax laws there are inclusive and there are no tax havens... maybe you
need to move to an island...

Hope this is helpfull.

I am a UK resident..

The use of the scheme proposed does rely on a degree of trust (in the
non financial sense!), and seeking adverse information about the
company and those involved in its operation is quite sensible.

The records from Companies House do show those involved have been
operating in the financial services for some time. However, I have not
had the chance to research them or their companies thanks to lack of
disposable time (thus my post on Google Answers)....

Their have been a spate of court cases against offshore companies /
trusts (or more precisely, the users of them) ? and I am interested if
they have been involved in any of this action (and if yes,
what the outcome was).

The schemes do offer a way for money to renter the UK ? so it is not
really about off shore wealth accumulation. To do that, Sovereign
Group [http://www.sovereigngroup.com/] offer quite dynamic solutions.


In relation to B and C:

Wikipedia offers a superficial insight into the laws at:

http://en.wikipedia.org/wiki/Category:Taxation_in_the_United_Kingdom
http://en.wikipedia.org/wiki/Furniss_v._Dawson
http://en.wikipedia.org/wiki/IRC_v._Ramsay

The scheme states it has taken action as a result of other court cases
(Dextra) ? but I would obviously like to know what this action was,
and if the action reconciles with current Inland Revenue rules (thus
questions B and C).

Filling in the registration form for these companies commits you to
nothing, and they provide an information pack containing the full
workings of the scheme. To quote: ?JOIN US If you would like to have
more information or want to join,click on the link below.?