First-tier Tribunal distinguishes MM to hold Ponzi-scheme interest taxable | Practical Law

First-tier Tribunal distinguishes MM to hold Ponzi-scheme interest taxable | Practical Law

The First-tier Tribunal, distinguishing MM v HMRC [2011] UKFTT 807 (TC), held that interest on loans advanced to a fraudulent borrower was taxable, where both the principal and interest were re-advanced to the borrower in a cycle that ultimately ended with the appellant making a partial loss (Rusling v HMRC [2014] UKFTT 692 (TC)).

First-tier Tribunal distinguishes MM to hold Ponzi-scheme interest taxable

Practical Law UK Legal Update 7-575-6551 (Approx. 3 pages)

First-tier Tribunal distinguishes MM to hold Ponzi-scheme interest taxable

by Practical Law Tax
Published on 25 Jul 2014 • United Kingdom
The First-tier Tribunal, distinguishing MM v HMRC [2011] UKFTT 807 (TC), held that interest on loans advanced to a fraudulent borrower was taxable, where both the principal and interest were re-advanced to the borrower in a cycle that ultimately ended with the appellant making a partial loss (Rusling v HMRC [2014] UKFTT 692 (TC)).