Taxman swoops on PPI millionaire

HM Revenue & Customs is investigating payments made to the multimillionaire boss of a claims handling agency
Taxman swoops on PPI millionaire
INSURANCE NEWS
By Terry Gangcuangco
14 Aug 2017
With the payment protection insurance (PPI) mis-selling debacle far from over, a particular subsector has been reaping the rewards.

It’s money in the bank – literally – for PPI claims handling agencies that The Times said have become part of a huge industry. Now, the largest shareholder of one company is being probed by HM Revenue & Customs (HMRC).

The Harringtons Advisory, and its biggest shareholder, is under scrutiny for a so-called remuneration trust – with HMRC looking into payments during the past two years amounting to £11.6 million.

Ibrar Akbar, the company’s 30-year-old director, has become a multimillionaire from his mis-sold PPI claims handling business according to the report.

Meanwhile, a Harringtons annual report said: “The directors, based on professional advice, believe that the company has sound arguments to refute any assessment of tax due.”

The UK’s tax authority, according to The Times, is zeroing in on disguised remuneration schemes used to compensate directors, such as Akbar, via loans that are not subject to income tax.            

The report said Harringtons is also under Ministry of Justice investigation due to multiple alleged violations.


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Nigerian nationals jailed over £2.5 million UK scam
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