Tax avoidance promoter Hyrax did not pay £1m penalty

Tax avoidance promoter Hyrax did not pay £1m penalty

Mar 26, 2024

Hyrax Resourcing has been given a winding up petition after the promoter failed to pay a £1m penalty to HMRC over illegal tax avoidance scheme

In July 2022 the tax avoidance promoter was given a £1,076,400 fine by the First Tier Tribunal for failing to notify HMRC of an avoidance scheme under the disclosure of tax avoidance schemes (DOTAS) regulations.

HMRC filed a winding up order against Hyrax Resourcing on 4 December 2023 and at a court hearing the firm was told that it would be put into liquidation, under the provisions of the Insolvency Act 1986.

Winding up proceedings started on 24 January and documents show that the sole creditor is HMRC with a total debt of £1,103,033.

The company was run by a sole director, Joanna Macnamara, who had been in charge for a decade since February 2014, and has no staff.

Hyrax promoted a disguised remuneration scheme that involved routing money to an offshore trust in Jersey and was used by over 1,000 individuals. The scheme was the successor to the K2 avoidance scheme that made headlines in the early 2010s.

At the FTT hearing in 2022, the tribunal stated: ‘Hyrax retained 18.5% which was effectively them splitting the tax saving with the scheme user. HMRC have calculated that the gross receipts in the period were £37,608,000 which is approximately 18.26% which is broadly consistent with that finding. That means that the tax saving was a very significant figure.’

The tribunal fined Hyrax the maximum £600 a day for the period 9 April 2014 to 5 March 2019 for failing to disclose these details for 1,791 days, resulting in a total fine of £1,074,600.