Being taxed on a savings account that I didnt setup

[doomed]

Hi,

A few years ago I put a 20k deposit on an off plan apartment in Cyprus. The bank, developer and lawyer had a very good relationship and sorted out everything for me. However, I never correctly appointed my lawyer as my power of attorney. My lawyer successfully applied for a mortgage on my behalf and setup and escrow account to pay the developer from and certain stages of the development.
We (2000 investors) had no ideas that these loan were setup and did not understand how as it was never explained to us.
Several years later a lot more fraud etc has been found and everyone has walked away from their investments - a lot of legal action is currently underway.
The problem is the escrow account have been earning tax, and even though none of us have access to them or authorised them, the Inland Revenue now want their cut. We explained our situation but the IR are insistent that we pay the 1000s in tax.
Has anyone ever experienced such a situation and does anyone have any advice?

Thanks

[Generix]

Am I to understand the overseas escrow account has been earning interest and the UK authorities want the tax on this?

[doomed]

That is correct. However, we don't have access to this account and we've all walked away from the investment.
When the mortgage was setup. 2 accounts were created - one loan account and one escrow. The loan account has been charging us interest and the escrow has been earning interest.

[doomed]

Hi Generix,

You are absolutely correct.

Thanks