10 years ILR Refusing for tax discrepancy ! please advice

[arka12]

Can I claim mitigating circumstance if a certified letter is issued from the accountant who has amended the tax returns.

[zimba]

From official UKVI guide: False representations – Tier 1 (General) earnings concerns

Accountants
The most common explanation deployed by applicants is that an error was made by
their accountant in preparing their tax returns. These should not be accepted at face
value, without details and supporting evidence.
If the applicant has made a complaint to their accountant or their accountant’s
regulatory body, this may be a factor in the applicant’s favour. However, you should
consider the timing of the complaint(s). If the applicant made such a complaint close
to the date of their application or while it was being considered, they may have done
so simply to try to strengthen their application, particularly if significant time has
passed between the date of the alleged error being discovered and the filing of the
complaint

See also Tax discrepancies and paragraph 322(5) refusals: what are they and how to challenge them

[Zerubbabel]

It seems to me that what started the entire thing is the change in 2015 that caused a discrepancy comparatively to 2009.

What happened in 2009? What kind of error was in the tax return? Was it showing higher revenue than actual?

But, why in 2015, you changed it?

I just want to understand the history of this issue to see if there isn't any possible angle of response to the Home Office.

[CR001]

It seems to me that what started the entire thing is the change in 2015 that caused a discrepancy comparatively to 2009.

What happened in 2009? What kind of error was in the tax return? Was it showing higher revenue than actual?

But, why in 2015, you changed it?

I just want to understand the history of this issue to see if there isn't any possible angle of response to the Home Office.

It was around 2015 that hundreds of Tier 1 General migrants were being refused ILR due to tax amendments. They had inflated their income to qualify for the Tier 1 extensions, then soon after or a couple of years later, amended their income to a much lower figure to reduce their tax liability to HMRC, which means they would NOT have qualified for the Tier 1 extension in the first place and this is seen as deception and false misrepresentation of facts.

So by only amending their tax in 2015, the OP likely realised the issue. I do wonder if the OP tried to apply for ILR based on 5 years Tier 1 General and if they were refused.

[THO]

Arka, did you or did you not inflate your income to gain a tier one visa?

You avoid answering this or providing specific details, and so it is not possible to determine what case you have. Which to my mind the HO think you got caught red handed and are now trying to find a way to remain in the UK using any visa / option possible.

If you did inflate your taxes, you cheated and these are the consequences. If you did not, then surely your tax return will have the name of the person / accountancy firm that prepared it for you since it is an official document, and needs to be completed by an accredited firm. It will be possible to find them and get them to answer your questions and resolve your issue.

[Zerubbabel]

So by only amending their tax in 2015, the OP likely realised the issue. I do wonder if the OP tried to apply for ILR based on 5 years Tier 1 General and if they were refused.

So if I understand well, people who didn't get greedy and tried to lower their liabilities later, are less likely to get caught as they always presented consistent accounting / tax returns over the years.

[CR001]

So by only amending their tax in 2015, the OP likely realised the issue. I do wonder if the OP tried to apply for ILR based on 5 years Tier 1 General and if they were refused.

So if I understand well, people who didn't get greedy and tried to lower their liabilities later, are less likely to get caught as they always presented consistent accounting / tax returns over the years.

There are many who played by the rules and yes, indeed were not greedy and had successful ILR applications. Unfortunately, there are even more that failed due to this unfortunate loop hole of amending tax from previous years.

[Zerubbabel]

There are many who played by the rules and yes, indeed were not greedy and had successful ILR applications. Unfortunately, there are even more that failed due to this unfortunate loop hole of amending tax from previous years.

Thank you. I think it's fair to say here that the immigration status of the OP is compromised.

Even without immigration matters, going around to amend HMRC previous tax returns is just asking for trouble and opening the proverbial can of worms.

[zimba]

There are many who played by the rules and yes, indeed were not greedy and had successful ILR applications. Unfortunately, there are even more that failed due to this unfortunate loop hole of amending tax from previous years.

Thank you. I think it's fair to say here that the immigration status of the OP is compromised.

Even without immigration matters, going around to amend HMRC previous tax returns is just asking for trouble and opening the proverbial can of worms.

Check this report from 2018: https://assets.publishing.service.gov.u ... report.pdf

HO errors seem to have affected only a minority of the cases. In 88% of cases (1,490 applications), the discrepancies amounted to more than £10,000. So in the majority of cases, the refusals were somewhat justified and showing Tier 1 General route was abused by these applicants

A point on accountants:
In most cases, accountants are not required or obligated to verify the figures that a client claims to have earned. They are in fact not required to do so unless they are auditing. My accountant does not care about the numbers I give him. He simply prepares the documents required and submits them. Blaming accountants was largely a nonsensical claim as they are not legally accountable for figures declared by the client. Accountants in most of the cases did not make any mistakes or errors, they simply prepared tax returns based on what client claimed.

[Zerubbabel]

Interesting document.

Key Findings:




Here is the pattern that attracted their attention. It was probably perceived as an easy loophole and many just did that...

In early 2015, data sharing was extended to Tier 1 (General) applications, due to concerns
that many applicants had claimed self-employed earnings which were not genuine. It had
often not been possible to check these claims against HMRC records at the time of
previous applications, because deadlines for submitting returns to HMRC for the relevant
periods had not yet expired.

In May / June 2016, HMRC identified a new pattern of customer complaints which were
linked to chasing amendments to Self-Assessment Returns. The individuals in question
had:

- previously submitted tax returns showing income levels which broadly aligned with
the NIC/Tax lower limits (meaning little or no tax was paid);

- recently submitted amendments to their returns showing much higher income levels
from a 'new' source which took their income over £25k and asked for earlier years
to be amended as well;

- followed up their amended returns with requests for the amendments to be dealt
with urgently - mentioning the Home Office in their calls; and

- in some (but by no means all) cases, the customer later submitted a further
amendment using another set of low figures, thereby avoiding paying tax due on the
higher income.

In response to this pattern, HMRC and the Home Office launched a joint project to identify
cases in which an amended tax return was linked to an ILR application in progress.

[arka12]

so what is the possible action plan!

[zimba]

so what is the possible action plan!

The million-dollar (but unanswered) question is did you adjust your taxes to acquire Tier 1 visa ? If yes, then you should accept the consequences of your actions and potentially lose your right to stay in the UK. If not, then what is the reasonable explanation you have for such amendments ? It seems you do not have one. We already offered you all the information you need to understand why they are investigating this. UKVI has been dealing with this for years due to the high level of abuse.

[THO]

It seems obvious from the OP's complete avoidance of answering the question that has been put to him so many times, that he is in-fact guilty of misrepresenting his financial situation to illegally obtain a visa, and as such now he has been caught, is desperately trying to find a way he can continue to circumnavigate the rules so he can remain in the UK.

As Zimba points out, the upshot is that he does not seem to have a way to explain this discrepancy and is therefore likely to lose his right to remain in a country in which he in-fact has no legal right to be in? As Zimba said, if you had a simple explanation (and not one that relies on your accountant has vanished and it was his mistake, which the HO will not accept for obvious reasons) then it would be an easy fix.

Best advice is get a good lawyer.

[arka12]

So if i take a good advice from a lawyer, the chances of winning the case is much higher. Is that right.

[THO]

A good lawyer will be able to tell you with more certainty whether you have a win-able case and if so represent you so you stand the best chance. If he is honest, his advice might be do not bother, since you will not win.

So, from your answer it is now very obvious you did artificially inflate your numbers and have been caught. A lawyer would also be able to advise on other options.

[CR001]

A good lawyer will be able to tell you with more certainty whether you have a win-able case and if so represent you so you stand the best chance. If he is honest, his advice might be do not bother, since you will not win.

So, from your answer it is now very obvious you did artificially inflate your numbers and have been caught. A lawyer would also be able to advise on other options.

A lawyer will also see this type of case as a cash cow for the lawyer to make lots of money. If you pay enough, they will tell you what you want to hear.

[THO]

If they are reputable, they should act in the best interests of the client and give honest advice. If not, they will do as you say CR, so good point, the OP should use one from the recommended solicitors linked to from HO Web page.

However, no one on here is going to be able to help him any further than he has been, or give him the silver bullet piece of advice he needs to placate the HO.

[zimba]

So if i take a good advice from a lawyer, the chances of winning the case is much higher. Is that right.

Nope. A lawyer cannot magically help you to win a case, given that for this matter many have already gone to court and failed. The case law shows courts mostly sided with HO on this issue but I think you do not care about that as you are not interested to read it. Your chances of ILR are slim to none but it would be nice to see what a lawyer can try to argue. Obviously lawyers happily take your money and represent you even if they know you have no case at all. They may argue on human rights basis (this seems to be their shtick) which is tough to prove and you do not seem to have a legitimate human rights claim either, but even that does not lead to ILR.

[arka12]

Sad thing is innocent people are the victims of this situation. Genuine people voice is unheard.

[zimba]

Sad thing is innocent people are the victims of this situation. Genuine people voice is unheard.

Everyone deserves the benefit of the doubt but it seems you are unable to provide any good argument on why you had those tax amendments, hence you are not viewed as genuine. You need to show how you have been victimised by UKVI's legitimate investigation of your tax affairs

[arka12]

My Accounts were dealt by an agent who works for Accounts firm. When things were taken to the Accounts company they asked to speak to the Agent, who is not available. Finally it is upto HO whether they want to consider or not.
I feel pity on thousands of work force who have been working in UK hoping to make their home in UK.

[zimba]

My Accounts were dealt by an agent who works for Accounts firm. When things were taken to the Accounts company they asked to speak to the Agent, who is not available. Finally it is upto HO whether they want to consider or not.
I feel pity on thousands of work force who have been working in UK hoping to make their home in UK.

People who abused the immigration system in the past have made it significantly harder for genuine migrants to live and work in the UK. This is why it is totally appropriate for the UKVI to investigate and punish those abusers. Accountants are not responsible if you provided them with incorrect figures. The question is did you provide inflated/incorrect figures of your income or not ? This has now been asked many times but we yet to hear an answer from you. If you need advice, you need to provide the information. If not, I am not sure what you are doing here

[seagul]

There is no chance of exculpation on any ground unless some rare mental disorder/disease resembling to Kleptomania has had encountered. Also as already stated by Zimbathat you might be persuaded by some solicitor against some heavy fee but soon after the fee payment his assistance will be evaporated because he could be trapped as well. Few years ago one solicitor tried to represent someone in similar circumstances but later he trapped himself because HO started investigation his tax affairs too who then vanished by pretending of going on holidays.

[arka12]

Wrong figures were submitted by the Agent. Who is not available at the moment.

Genuine people like me who trusted agent should not be misrepresent.

i sympathise all those who are in this trap.

[arka12]

its waste of time on thinking about this any more.

there is no point in arguing on this subject.


Goodluck to all the people sailing in this 10 year ILR Boat.

i am applying for ILR dependent.