The Austrian Alpine Club (UK) Ltd
Company Number 09772805
An unsolicited Management Survey Report
The inevitability of our impending bankruptcy and closure
Summary of the relevant Rules of HM Revenue and Customs (HMRC)
If a principal reason, (and it need not be the principal reason), for anyone joining a UK Club, (i.e. one with UK tax liabilities), is to obtain any form of insurance that is obtained from anywhere in the world and included at no extra charge in the membership subscription, then Insurance Premium Tax (IPT) is legally required to be added to the whole of the subscriptions paid by all UK residents.
This tax must always be remitted on time. If it is remitted late, it always results in simple interest being charged at 2.75% per day.
The Club’s Response to its Insurance Premium Tax (IPT) obligation
At no time since it was introduced in the 1994 Finance Act has the Club's annual accounts included any mention of IPT collection and remittance. When challenged on this, our ruling elite insist that our Club has no IPT liability, although they have never tried to challenge the evidence published here, even though their attention has been drawn to it.
- Irrefutable proof that most of our members join principally for the cheap tax-free insurance our membership provides is given in the Membership webpage.
- The Österreichischer Alpenverein (ÖAV) is our Club’s parent body. Our Directors have sought and obtained the assurance of the ÖAV’s EU insurance provider that UK tax laws do not apply to the insurance provided by the ÖAV, which is a statement of the obvious but is totally irrelevant!
- Our own members are purchasing the insurance from our own club, the AAC(UK) Ltd, which correctly accepts that it is subject to UK taxation laws, such as for VAT and Corporation Tax. It is our own corporate UK body that is marketting insurance in our own independent Club's membership package, so we have a genuine IPT liability. The fact that the insurance source is located abroad is irrelevant.
- If this were not the case, it would reveal an obvious loophole through which all British insurance companies could evade any IPT liabilities. All they would have to do is to set up a parent club in the EU to purchase tax-free EU insurance, and then set up an independent offspring UK Club to market this (EU Club) ‘membership’ to UK citizens, with insurance included in the membership package net of IPT. No such loophole exists. The Directors were clearly clutching at straws. Since they had seized the initiative to ask this question of the ÖAV’s insurance provider, prompting our Chairman's phone call to me with the answer and claiming it proved that we have no IPT liability, it confirms that our Directors are all-too-well aware of my disclosures herein and are all-too-happy to seize on any such false assurances without making any attempt to analyse them.
- IPT was introduced in the UK's 1994 Finance Act and has been mandatory ever since.
- The late payment charge is not a misprint. It is as high as that to discourage late payments, since the government must collect all tax on time if it is to pay its way.
- [Paragraphs added 29th June 2022.]
- Our principal competitor is the British Mountaineering Council, the BMC, who market similar insurance, although world-wide cover is not available if one is over 65). Their annual alpine cover would cost me £556-06 pa (IPT inclusive) on top of mandatory BMC membership costing me £31-00 pa. When I once encountered the BMC General Secretary (27th November 2000 at Plas y Brenin), I asked him how many of his members took out this insurance, and he said it was only a few hundred pa, since most UK mountaineers opt for AAC membership instead…..which costs me just £44 pa and which includes comprehensive world-wide mountain rescue, medical, repatriation and civil liability insurance without age limit, all for no etra charge.
- Why is our insurance so cheap? The ÖAV’s insurance provider, Knox, averages out the risk across the entire club membership of 600,000. Nearly all them are Austrians, who, on average, generally stick to well-maintained mountain trails and do little that seems risky. Our relatively very few UK members generally go to the Alps with much more challenging goals in mind.
- Since our ruling elite have so obviously shown nothing but contempt for our Country’s taxation laws, it is hardly surprising that they have also shown contempt for our Club’s Constitution, explained in the Incorporation webpage.
The Financial Consequences
Had the IPT debt due to be paid in 1995 been remitted a year later, at the end of 1996, that 12 month delay would have required the 2.75% daily interest to be charged 365 times, making the late payment interest 1,003.75%, whic is more than 10 times the tax itself due for 1995.
If the IPT debt at the end of 1995 is remitted at the end of this year, 2022, it will be 27 years late. This means that the annual interest of 1,003.75% pa must be applied 27 times, increasing it to 27,101.25%, making the interest over 271 times the tax evaded in 1995.
If provided with historic membership revenue data, please, this IPT Debt Table would be swiftly completed and this webpage updated. At present it has only been completed for the 4 years for which annual subscription revenues from UK residents are currently published on our club website, 2017 to 2020. Just for these 4 years alone, we owe £9,316,323. No, that is not a misprint, we owe over 9 million pounds for just those 4 of the 27 years from 1995 to the end of 2022.
Without any doubt whatsoever, the AAC(UK) is heading towards bankruptcy and closure.
The two sources of evidence needed to calculate the total debt are these:
- The annual historic subscription revenues from members who were UK residents at the time. These have been accurately recorded by the Club, and are available (only) to all Directors, on the Club's (password protected) Management Web-Server.
- The legal requirements laid down by our Government. These are available to everyone via the HMRC public website. Here are some relevant extracts.
- Every claim made herein is demonstrably true, there are no personal opinions expressed;
- It therefore follows that I cannot be sued for libel. And anyway, any attempt to do so would necessitate bringing the contents of this website to the court’s attention.
- Had the Directors been able to repudiate the evidence documented herein, they would have surely taken great delight in ridiculing me by doing so. They have certainly had long enough. Their silence speaks volumes.
The only Options Available to the Club
We have just three options:
- Either to prove that we are completely in the clear by clearing two hurdles:
Or to accept that we have historically been in the wrong, and to apologetically reveal our audit evasion to Companies’ House and our tax evasion to HMRC, hoping that although this will inevitably bankrupt the Club, forcing its closure, at least the members of the current Board of Directors might possibly escape criminal prosecution; but the longer they dilly-dally the less their chance of doing so.
Or to continue with the Club’s current course of action, hoping that although the Club will inevitably face bankruptcy and closure at some time in the future, it might not be until the each current Director has “shuffled off this mortal coil” and thus escaped humiliation and punishment. Since the facts have been in the public arena since 5th November 2019, and were brought to the attention of HMRC in April 2022, this is most unlikely. Furthermore, web search engines have been locating the evidence since 2020, some of the recent examples being revealed in the Postscript webpage.
- We need to prove to the complete satisfaction of Companies’ House that we do not market insurance to any of our members, and that we are therefore not legally required to have our accounts annually audited;
- We need to prove to the complete satisfaction of HMRC that our UK Club is exempt from the IPT laws that apply to every other UK Club.
In which direction should our Directos jump? In which direction will they jump?
Even though all of my recommendations should be statements of the obvious, why should I think I have the right background and experience to make them? The answer is in my CV.
Three Polite Requests
- Please focus your attention on addressing the main issues and do not waste time nit-picking trivia. Do not ”strain out a gnat and swallow a camel” (Matthew 23:24), [proving that even “The devil can cite scripture for his purpose.” (The Merchant of Venice)].
- Please resist any temptation to exonerate those responsible for defrauding the Government.
- Please resist any temptation to turn your anger on the innocent whistle-blower.
The full Management Survey
Each of the following links takes you to an individual webpage giving you a full account. These links are also listed together at the foot of each page.
The first five webpages reveal the most critical issues, which deal with illegality and must be given precedence.
- IPT (this opening webpage) proves that the Club has had an IPT liability ever since 1995.
- Membership proves that the majority of members join principally for our insurance.
- Response reveals the directors' response to these revelations, which might lead to them facing criminal prosecution.
- Audit explains that organisations which market insurance products, as we do, are legally required to have their annual accounts professionally and independently audited. Why do we insist on not complying, if not to ensure that our tax evasion is not uncovered?
- Incorporation proves why our enforced irreversible Incorporation was both unlawful and disadvantageous.
Unless you can successfully overturn the issues listed above, the Club will quickly descend into bankruptcy and closure. If this happens, there will be no point wasting your time analysing the following less important management issues.
- Bureaucracy explains how we can quickly and easily reduce our unnecessarily high level of bureaucracy and save a fortune.
- Democracy seeks the restoration of our members' Democratic Rights, which in recent years have been denied.
- Risks proposes a significant simplification to our handling of Civil Liability Risks.
- Meets recommends the introduction of an effective Meets Planning and Management System, together with improvements to our provision of Day Walks and Lectures.
- Newsletters recommends constructive and cost-saving changes to our Newsletter policy.
- Website reveals serious flaws in both our current and previous websites.
- Facebook describes and justifies a much more effective communications channel than Facebook.
- Training analyses our training programme and challenges the need for it.
- Sales reveals how our Sales strategy can be improved.
- Board seeks an explanation for our rapid turnover of Directors.
- Feedback presents an opportunity for anyone to suggest additions, deletions, corrections, or improvements to this website's contents, or for members (only) to have their own opinions published herein.
- Postscript reveals that the lawlessness exposed in this website has been located by web search engines which have quite definitely placed it in the publc domain.
The most critical issues:
The less-critical issues, not to be dealt with until you've solved the critical issues:
This is the introductory IPT webpage.
Uploaded 5th November 2019. Last Reviewed 29th June 2022.
Return to the top of this page or to the complete Website Index