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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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Hi, I am a 25 % share holder of a commercial property. My

Resolved Question:

Hi,

I am a 25 % share holder of a commercial property.
My sister has 25%
My father has the remaining 50%.

Hystorically income annually was issued to all shareholders of circa £12,500 per 25% share.
My father - the only signatury on the cheque for the account- has refused to issue the income to me for 3 years, despite the other parties relieving the income as usual.

He has paid tax on my share out of the pot of monies and always kept it in my name, until date.
However, for the tax year 2012-2013 he has taken my money and HE has paid tax on the money he is refusing to issue.

My question is
1) his accountant wants me to take off the income from my tax return for 2012-2013 as he has claimed he has received the monies and has therefore paid the tax on it.
If I agree to do this, does it take away in law, my entitlement to the money retrospectively and going forward?

2) is it fraud if he is with holding my income.
I can prove my 25% share entitlement.

Thanks for your help.
Sian
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.

Alex Watts : Hello my name is XXXXX XXXXX I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : Are you all registered as owners please ?
Customer:

Yes and I have the document stating that income will be received annually in line with rental income. I know I'm entitles to £12,664 for that year.

Customer:

I should just inform you that the HMRC are chasing me for the tax due on the £12,664 (which I haven't received) and are threatening bayliff and debt management agencies after 11th April if this issue isn't resolved by then so we have a very imminent deadline!

Alex Watts :

So you are asking to pay tax on sums not owed to you?

Alex Watts :

Did you agree to report the earnings to HMRC on your return please?

Customer: Yes I'm being asked to pay tax on sums not given to me by law.
Customer: i did agree to the return including it on the understanding that a) the income would come and b) it could be adjusted at a later dare. I had heard that it could affect my entitlement to the money by not declaring it. Is this true?
Customer: also didn't want to inherit the monies and have a big tax bill later down the line.
Alex Watts :

Is that in writing?

Customer: Yes
Alex Watts :

Ok.

Alex Watts :

1) Is it legal - no

Alex Watts :

It is fraud because you are declaring money which you do not have and are not entitled

Alex Watts :

2) It is fraud because that income is being moved for tax purposes. This is tax evasion

Alex Watts :

You are entitled to 25% and that's it

Alex Watts :

If you declare more then you are lying for tax purposes which is illegal

Alex Watts :

If you are named at the Land Registry then you will always get and keep the 25%

Alex Watts :

You need to check this.

Alex Watts :

That is your first step

Alex Watts :

If you can prove the 25% then you will never lose it

Alex Watts :

Can I clarify anything for you about this today please?

Customer: Yes please,
Customer: im not entirely sure I understand you answers. Ok just to clarify.
Alex Watts :

Of course

Alex Watts :

ok

Customer: 1) can his accountant make me tax the income off my tax return?
Alex Watts :

1) if you didnt have it physically - no

Customer: 2) if my father has taken the income of my 25% is this theft?
Alex Watts :

2) It might be - or it just might be a civil debt which you need to issue county court proceedings

Customer: But if he's not legally entitled to it, has taken it and chosen to pay tax on it himself- surely that's clear cut?
Alex Watts :

Not necessarily - the Police may just view this is a debt

Alex Watts :

You can report it but the Police may not do anything

Customer: Ok thanks
Alex Watts :

 


If this answers your question could I invite you leave feedback on my service which I hope has been excellent today, if you need more information or help then please click reply.


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Customer: One more-sorry
Alex Watts :

ok

Customer: so just to clarify if I take off the income from my tax return for 2012/2013 (thus declaring I didn't receive the £12,664 the HMRC are chasing me for) does this by law, take away my entitlement to the monies retrospectively or in the future from this stream of income?
Alex Watts :

No - it makes no different in terms of future income

Alex Watts :

You are still entitled to the 25%

Customer: So aside from the civil court is there any other way to claim this money?
Alex Watts :

Civil Court or Police but they may not be interested

Alex Watts :

Can I clarify anything else?

Customer: Can I withhold or put a stop to payments to the other party receiving 25%
Alex Watts :

You could yes

Customer: Can I seize their property?
Alex Watts :

If you get a Court Judgment yes

Customer: How would I stop the other receiving the 25% then?
Alex Watts :

You need a Court Judgment

Alex Watts :

Then you can enforce it

Customer: ok
Alex Watts :

Please see:

Alex Watts :

https://www.gov.uk/make-court-claim-for-money/enforce-a-judgment

Alex Watts :

Can I clarify anything else?

Customer: Can the HMRC demand that he pays me my 25% share?
Alex Watts :

No

Alex Watts :

Its nothing to do with HMRC

Customer: Land if he is taking my 25% is that tax evasion on my fathers part? Even if he pays the tax on the 25% of mine?
Alex Watts :

Makes no difference/

Alex Watts :

You can only seek enforcement through the courts

Customer: Ok so final clarity.
Customer: 1) my father taking my 25% income is potentially fraud and I could inform the police?
Customer: there is no real need to remove the declaration of income to the HMRC of income for yr 12/13
Customer: 3) if I choose to remove it, there are no impacts legally on retrospective entitlements or future entitlements to the income?
Customer: Thank you - once these have been confirmed I think that's it
Alex Watts : 1) You can try but they may not act
Alex Watts : 2) No
Alex Watts : does that help?
Customer: Is it better to leave the declaration of income to the HMRC of income (even though I haven't received it) or shall I get the accountant to remove it?
Alex Watts : I would get a ccj for the debt.
Customer: Can I ask the HMRC for my tax back for the last 3 yrs if I haven't had the income on those years either?
Alex Watts : You probably can't because you shouldn't have declared it wrongly.
Customer: Even if I declared the income to the HMRC but my father refused to write the cheque for the income?
Alex Watts : Yes.
Customer: The tax would have been paid out of my income received from property and kept in a holdings account
Alex Watts : Its a private debt.
Customer: Ok thanks.
Customer: ill take action on this with his solicitor, his accountant and the HMRC tomorrow morning
Customer: do you mind if I come back to you incase anything more rears itself in the morning?
Customer: Thanks for your help
Alex Watts : Great. Please remember to leave feedback before you go today
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience: Solicitor with 5+ years experience
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