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Thousands of North Sea workers could be in line for large tax bills, BBC Scotland has learned.
It follows a ruling by Revenue and Customs (HMRC) officials that some vessels involved in offshore work should no longer be classed as ships.
As a result, workers on dive vessels and other vessels may no longer qualify for seafaring income tax concessions.
Unions have criticised the move, but the HMRC said it had a duty to ensure the law is applied correctly.
Jake Molloy, of the OILC/RMT union, said the new HMRC guidance on the law could cripple the dive support and remotely operated vehicle (ROV) industries.
Urgent meeting
He added: "It could be a damning blow for the ROV and dive support industry, in that they were able to attract people of a seafaring background to work in the industry because of this provision.
"Many of them now will see that attractiveness gone, and almost certainly we will see a move of many thousands of workers potentially moving back to other industries because they don't have to be away from home all this time to cover their tax."
Peter McEwen, deputy general secretary of the maritime union Nautilus UK, said the decision was "outrageous" and called for an urgent meeting with treasury officials.
Aberdeen South MP Anne Begg said she was seeking a meeting with the chancellor over the matter.
Ms Begg said she had been "taken aback" when she learned of the ruling that various vessels were no longer classified as being ships after being contacted by several concerned constituents who work offshore.
She added: "It is too early for me to hold out any hope that this can be changed, but certainly I will be lobbying the chancellor as hard as possible to get them to relook at it because I am fairly sure that this was not the intention of the government when the rules were set a few years ago."
An HMRC spokesman said: "Revenue and customs need to make sure the law is applied correctly - this matter went before the special commissioners."
The spokesman said Chancellor Alistair Darling would respond to the concerns in due course.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/scotland/north_east/7638490.stm
Published: 2008/09/26 18:46:53 GMT
© BBC MMVIII
It follows a ruling by Revenue and Customs (HMRC) officials that some vessels involved in offshore work should no longer be classed as ships.
As a result, workers on dive vessels and other vessels may no longer qualify for seafaring income tax concessions.
Unions have criticised the move, but the HMRC said it had a duty to ensure the law is applied correctly.
Jake Molloy, of the OILC/RMT union, said the new HMRC guidance on the law could cripple the dive support and remotely operated vehicle (ROV) industries.
Urgent meeting
He added: "It could be a damning blow for the ROV and dive support industry, in that they were able to attract people of a seafaring background to work in the industry because of this provision.
"Many of them now will see that attractiveness gone, and almost certainly we will see a move of many thousands of workers potentially moving back to other industries because they don't have to be away from home all this time to cover their tax."
Peter McEwen, deputy general secretary of the maritime union Nautilus UK, said the decision was "outrageous" and called for an urgent meeting with treasury officials.
Aberdeen South MP Anne Begg said she was seeking a meeting with the chancellor over the matter.
Ms Begg said she had been "taken aback" when she learned of the ruling that various vessels were no longer classified as being ships after being contacted by several concerned constituents who work offshore.
She added: "It is too early for me to hold out any hope that this can be changed, but certainly I will be lobbying the chancellor as hard as possible to get them to relook at it because I am fairly sure that this was not the intention of the government when the rules were set a few years ago."
An HMRC spokesman said: "Revenue and customs need to make sure the law is applied correctly - this matter went before the special commissioners."
The spokesman said Chancellor Alistair Darling would respond to the concerns in due course.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/scotland/north_east/7638490.stm
Published: 2008/09/26 18:46:53 GMT
© BBC MMVIII
