The scheme was operated by tax adviser John Dryburgh, who is now in bankruptcy, through his companies Scotts Atlantic Management and Scotts Film Management.
The Tribunal said: “There is no doubt that Mr Dryburgh not 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 evidence.”
HMRC challenged tax deductions of almost £9m which Dryburgh’s companies paid in the EBTs. The payments came out of profits earned by selling tax avoidance film schemes. HMRC said the Tribunal decision, which denied the claimed deduction, has protected £2.4m of tax.
The Revenue added that, although Dryburgh is in bankruptcy and Scotts Atlantic Management is in liquidation, it believes the cash can be recovered.
David Gauke, the Exchequer Secretary to the Treasury, 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.”
HMRC and the UK government have been cracking down on tax avoidance schemes and their promoters in heavily over the past couple of years.
