FSA 'making example' of Keydata over £5m tax bill

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The FSA halted negotiations between Keydata and HMRC over an unsettled tax bill and forced the company into administration, IFAonline understands.

A source close to the structured products (SP) firm says it had drawn up a repayment strategy for the bill, reported to be around £5m, but the FSA rejected it. The source adds Keydata also suggested a "quiet trade sale" of the company but claims the regulator was again unmoved. The bill relates to one of Keydata's first forays into the market. According to HMRC, in 2005, four tranches of Keydata's secure income bond, now its defined income plan, were inadequately incorporated in Luxembourg. They were sold to investors through ISA holdings and HMRC deemed there was unpaid tax on the in...

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