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HMRC's David Heaton quits after offering tips on avoiding tax | HMRC's David Heaton quits after offering tips on avoiding tax |
(35 minutes later) | |
A government tax adviser who was secretly filmed offering tips on how to keep money "out of the chancellor's grubby mits" has resigned. | A government tax adviser who was secretly filmed offering tips on how to keep money "out of the chancellor's grubby mits" has resigned. |
David Heaton, who went on to advise HM Revenue and Customs on tax avoidance, was filmed at a London conference in a probe by BBC Panorama and Private Eye. | |
He told the audience how they could exploit maternity pay rules "to get the government to pay your bonuses". | He told the audience how they could exploit maternity pay rules "to get the government to pay your bonuses". |
He has said he does not advocate artificial or abusive tax arrangements. | |
Two months after the conference - entitled 101 Ideas for Personal Tax Planning - Mr Heaton started work on the key HMRC panel. | Two months after the conference - entitled 101 Ideas for Personal Tax Planning - Mr Heaton started work on the key HMRC panel. |
His job was to advise HMRC and the courts about artificial and aggressive tax avoidance. | His job was to advise HMRC and the courts about artificial and aggressive tax avoidance. |
No 'abusive tax arrangements' | No 'abusive tax arrangements' |
At the conference, Mr Heaton was caught on camera describing a maternity scheme he called the Bump Plan. | At the conference, Mr Heaton was caught on camera describing a maternity scheme he called the Bump Plan. |
He said: "Ninety percent of what you pay out ends up with the employee. You can't really knock that one." | He said: "Ninety percent of what you pay out ends up with the employee. You can't really knock that one." |
By deliberately timing bonuses to enable an increased rebate on maternity pay, the tax paid on the bonus would effectively fall from 41.8% to just 8.4%, he explained. | By deliberately timing bonuses to enable an increased rebate on maternity pay, the tax paid on the bonus would effectively fall from 41.8% to just 8.4%, he explained. |
HMRC told BBC Panorama that the Bump Plan would be an abuse and that they would challenge anybody using it. | HMRC told BBC Panorama that the Bump Plan would be an abuse and that they would challenge anybody using it. |
Mr Heaton initially denied doing anything wrong, but his resignation was announced on Friday. | Mr Heaton initially denied doing anything wrong, but his resignation was announced on Friday. |
Treasury minister David Gauke said: "Mr Heaton's statements are directly at odds with the government's approach to tackling tax avoidance, therefore it is right that Mr Heaton resigns from his position." | Treasury minister David Gauke said: "Mr Heaton's statements are directly at odds with the government's approach to tackling tax avoidance, therefore it is right that Mr Heaton resigns from his position." |
At the conference, which members of the audience had paid £1,000 to attend, Mr Heaton was also filmed offering nine other tips to reduce an individual's tax bill. | At the conference, which members of the audience had paid £1,000 to attend, Mr Heaton was also filmed offering nine other tips to reduce an individual's tax bill. |
Chair of the Public Accounts Committee Margaret Hodge said she was shocked by Mr Heaton's comments. | |
"This is an absolutely classic example of where government passes a law with a particular intent and the tax advisers then abuse that and use it for a purpose that was never intended by government." | "This is an absolutely classic example of where government passes a law with a particular intent and the tax advisers then abuse that and use it for a purpose that was never intended by government." |
Mr Heaton had told Panorama he frequently used irreverent language to make his presentations more interesting, adding: "I do not believe a person who advocates artificial or abusive tax arrangements should be a panel member. I did not advocate any such arrangement at the conference and do not advocate such arrangements." | Mr Heaton had told Panorama he frequently used irreverent language to make his presentations more interesting, adding: "I do not believe a person who advocates artificial or abusive tax arrangements should be a panel member. I did not advocate any such arrangement at the conference and do not advocate such arrangements." |
You can watch Panorama: Tax, Lies and Videotape on BBC One, Monday 16 September at 20:30 BST and then in the UK on the BBC iPlayer. | You can watch Panorama: Tax, Lies and Videotape on BBC One, Monday 16 September at 20:30 BST and then in the UK on the BBC iPlayer. |