Christmas quiz answers

ONE

Are McVities Blissful over VAT Dispute

McVities Blissfuls hit the tax headlines in 2023 with a dispute with HMRC over whether a Blissful is wholly or partly covered in chocolate or whether the chocolate is a filling. 

2

0% Zero rate VAT (yeah and McVities reclaim VAT on costs keeping biscuit prices down)

3

Exempt from VAT (so-so, biscuits don’t have VAT but McVities can’t reclaim VAT on costs so more expensive than zero rated)

TWO

Former F1 Boss given Red Flag by HMRC

Finally HMRC caught up with former F1 Boss Bernie Ecclestone and the £xm trust fund he failed to declare during a previous HMRC enquiry.  But why did HMRC agree not to imprison Bernie

1

He agreed to pay penalties and accept a suspended sentence on the basis he would file correctly over the next 2 years

3

The offence was before 2016 when rules changed regarding sentencing guidelines

THREE

Whenever, wherever the Spanish tax authorities will pursue Shakira

After chasing hips-don’t-lie star Shakira for €14.5m tax bill for 2012-14 the Spanish Authorities were now seeking €6.7m for her 2018 income.  But where did Shakira claim she was resident instead of Spain

1

Columbia

2

United States of America

FOUR

Alan Sugar might have a claim against his tax advisor

Alan Sugar was paid a huge dividend and HMRC have now sent him a tax demand for £186m when he thought he might not have to pay any tax.  Why?

1

It was paid to an offshore trust, but his wife was a beneficiary

3

The company paid a dividend to his son who lives in Jersey

FIVE

Oscar Nominees were given a free “Everyone wins” gift bag worth $126,000

But how much does the IRS and state of California believe should be paid in taxes on the gift?

1

Nothing gifts are exempt

2

$18,900

ONE

Chinese New Year starts on Saturday February 10th and is the year of the Wooden Dragon

For Chinese New year gifts of red envelopes are given with money together with oranges.  But how many oranges should you bring?

1

One (just for the male host.  The Chinese consider it an insult to give a woman an orange)

3

Eight (it is a lucky number in China)

TWO

Paris Olympics

On 26th July the Summer Olympics starts in Paris, but to encourage skilled workers into France how much exemption were the French tax authorities offering

1

No income tax for the first five years

3

Reduced tax rate of 5% on income for the first 3 years.

THREE

Is 2024 the year in which Inheritance tax is abolished?

The current inheritance tax nil rate band is £325,000 (plus £175,000 residential nil rate band)
The nil rate band has been frozen since 2009.  How much would it be if it had increased with inflation?

1

£550,000

3

£425,000

FOUR

There is speculation the Sugar Tax might be extended beyond soft drinks in 2024

In Canada what do companies put in Cereal boxes for a tax-break

1

A flavour sachet

2

A comic

FIVE

With a UK general election due in 2024 if voter don’t understand the tax proposals, they will be in good company

Who said the hardest thing to understand is income taxes?

1

Karl Marx

3

Benjamin Franklin