Tax Take
Expert witnesses required to disclose professional relationship
In the recent case of EXP v Dr Charles Simon Barker [2015] EWHC 1289 (QB), the High Court has emphasized the importance of the independence of expert witnesses and of disclosing any conflicts of interests at the earliest opportunity.
Read moreTribunal orders HMRC to pay taxpayers' costs in avoidance case
In our blog of 3 July 2014, we reported on the decision of the First-tier Tribunal ("FTT") in R, A and M Gardiner v HMRC[1].
Read moreCourt of Appeal issues guidance on the meaning of "sham" in pension scheme case
In R v Quillan and others [2015] EWCA Crim 538, a complex fraud case, the Court of Appeal, in ruling that there was no case to answer, provided some helpful comments on the requirements of "sham".
Read moreBurden of proof for information notices on taxpayer
In the recent case of Joshy Mathew v HMRC [2015] UKFTT 139 (TC), the First-tier Tribunal (Tax Chamber) ("FTT"), considered where the burden of proof lies for establishing whether documents or information is "reasonably required", for the purposes of paragraph 1(1), Schedule 36, Finance Act 2008.
Read moreHigh Court dismisses negligence claim as taxpayer did not stand up to tax authority!
Law firm Baker & McKenzie LLP (the "Tax Advisers") have successfully defended a claim brought against them for losses arising out of negligent tax advice.
Read moreTaxpayer succeeds in his application for judicial review of HMRC's decision not to return overpaid income tax
In R (on the application of Andrew Michael Higgs) v HMRC [2015] UKUT 0092 (TCC), the Upper Tribunal ("UT"), exercising its jurisdiction to consider judicial review proceedings, has granted relief in favour of a taxpayer in a dispute in which HMRC refused to repay overpaid income tax.
Read moreUpper Tribunal imposes penalty in excess of £1 million on QC for failure to comply with information notices
In HMRC v Romie Tager [2015] UKUT 0040 (TCC), the Upper Tribunal (Judge Colin Bishopp) ("UT"), has considered tax related penalties under paragraph 50, Schedule 36, Finance Act 2008, for failure to comply with an information notice.
Read moreSuccess for successor company in tax appeal
In Leekes Limited v HMRC [2015] UKFTT 0093 (TC), the First-tier Tribunal (Tax Chamber) ("FTT") has held that a taxpayer that succeeded to a trade was entitled to set carried-forward pre-succession losses ...
Read moreAvoidance scheme effective despite HMRC's attempt to rely on Ramsay
In Gemsupa Limited and Consolidated Property Wilmslow Limited v HMRC [2015] UKFTT 0097 (TC) ...
Read moreTribunal confirms no penalty for implementing tax avoidance scheme
In the recent case of Herefordshire Property Company Ltd v HMRC1, the First-tier Tribunal (Tax Chamber) ("FTT") allowed the taxpayer's appeal ...
Read moreTribunal finds in favour of property developer who was not trading
In Terrace Hill (Berkeley) Ltd v HMRC[1], the First-tier Tribunal ("the FTT") rejected HMRC's arguments and concluded that a property developer's activity in relation to the development of an office property was an investment rather than a trading activity and allowed its appeal.
Read moreTax avoidance scheme succeeds before the Upper Tribunal
In Tower Radio Limited and another v HMRC[1], the taxpayers successfully utilised a scheme which was designed to take advantage of Part 7 of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA).
Read moreTaxpayer successfully relies on human rights argument to defeat HMRC following the taxation of the same profits twice
The appellant, in Ignatius v HMRC[1], has successfully fought off an attempt by HMRC to strike out his appeal, by relying on the European Convention on Human Rights ("ECHR").
Read moreHigh Court criticises HMRC's conduct and compels it to honour its undertakings
The published judgment in Abbey Forwarding[1] will not make for comfortable reading for HMRC.
Read more"Horse play" – Tribunal concludes that racehorse ownership was a gamble and not a trade and rejects the taxpayer's loss relief claim
In recent years, there has been a seemingly unending string of cases relating to whether certain activities constitute trading.
Read moreOut of court settlement may lead to adjustment in CGT liability
The Court of Session has found in favour of the taxpayer in Sir Fraser Morrison v HMRC[1] ...
Read moreFTT decision pays dividends for Mr and Mrs Jones
In Richard Jones, Julie Jones v HMRC[1], the First-tier Tribunal (Tax Chamber) (FTT) has decided that the owners of an insolvent recruitment consultancy do not have to pay employment taxes in respect of dividends paid to them which they subsequently reclassified as salary.
Read moreCJEU confirms UK failed to comply with EU law by retroactively curtailing rights of taxpayers to recover tax unlawfully paid
The European Commission has succeeded in obtaining a declaration from the CJEU that the UK Government failed to comply with its obligations, under Article 4(3) of the TEU, by retroactively curtailing the right of taxpayers to recover tax levied contrary to European law.
Read moreHMRC Dishonesty Allegation "seriously flawed"
The First-tier Tribunal (Tax Chamber) ("FTT") has ruled, in Citibank NA v Revenue and Customs Commissioners[1], that HMRC's pleadings were "seriously flawed".
Read moreTribunal sets aside witness summonses due to misrepresentation and failure in duty to make full and frank disclosure to the Tribunal
An interesting decision has recently been issued by the First-tier Tribunal (Tax Chamber) ('FTT') in connection with an application to set aside the issue of witness summonses which had been issued to two individuals who were resident in Jersey[1].
Read more2014 – The year that was
Seasonal greetings to all of our readers! 2014 has been another busy year for the RPC Tax Take team.
Read moreTribunal adopts a literal interpretation of the provisions in allowing the taxpayer's appeal
In Philip Shirley v HMRC, [1] the First-tier Tribunal (Tax Chamber) (FTT) concluded that a provision in a statute rewritten as part of the Tax Law Rewrite Project should be literally interpreted as the wording in question was clear and unambiguous.
Read moreHMRC's information notice was too vague
This case saw the First-tier Tribunal (Tax Chamber) (FTT) uphold the appeal of the taxpayer against penalties imposed by HMRC for non-compliance with an information notice issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008 (the Information Notice).
Read moreHMRC mislead appellants into believing they have a remedy in the Tribunal in contractual settlement dispute
In Morris and another v HMRC,[1] the First-tier Tribunal (“the FTT”) has confirmed that it does not have jurisdiction to determine a dispute relating to the correct valuation of assets which were the subject of a contractual settlement with HMRC.
Read moreHMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED
HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED - GSM EXPORT (UK) LTD (IN ADMINISTRATION) AND ANOTHER v HMRC[1]
Read moreHMRC's application for security for costs refused
HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED - GSM EXPORT (UK) LTD (IN ADMINISTRATION) AND ANOTHER v HMRC[1]
Read moreApplicants for search warrants must make full and frank disclosure to the court
The following is taken from an article by Adam Craggs, originally published in Tax Journal on 31 October 2014.
Read moreApplicants for search warrants must make full and frank disclosure to the court
The following is taken from an article by Adam Craggs, originally published in Tax Journal on 31 October 2014.
Read moreTribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC
The decision of the First-tier Tribunal (Tax Chamber) ('FTT') in Ian Elder v Commissioners for HMRC[1] offers a useful summary of the FTT's approach on the assignment of appeals to the Complex category ...
Read moreTribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC
The decision of the First-tier Tribunal (Tax Chamber) ('FTT') in Ian Elder v Commissioners for HMRC[1] offers a useful summary of the FTT's approach on the assignment of appeals to the Complex category, applications to bar a party from participating in proceeding and costs sanctions.
Read moreTax Tribunal confirms the time period in which HMRC must open an enquiry
As readers will be aware, HMRC generally has twelve months from the date a company files a return to open an enquiry[1].
Read moreFTT prevents HMRC from having two bites of the cherry!
In Lady Henrietta Pearson v HMRC [2014] UKFTT 890 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') concluded that HMRC had "ignored" its previous decision by seeking to reduce the amount of a VAT refund ...
Read moreGMAC's strategy for limiting VAT payments proved lawful in ECJ
The following is taken from an article by Robert Waterson and Nigel Brook, originally published in International Tax Review (12 September 2014).
Read moreHMRC lose employment status case
In the recent case of EMS (Independent Accident Management Services) Limited v HMRC [2014] UKFTT 891 (TC), the First-tier Tribunal (Tax Chamber) ("FTT"), found in favour of the taxpayer on the question of whether or not an employment relationship existed.
Read moreTribunal allows taxpayer to make a late appeal and rejects HMRC's overly formalistic approach
In Chirag Patel v HMRC[1] the First-tier Tribunal ('FTT') decided that a letter from the taxpayer's accountant constituted a late appeal against a discovery assessment, despite it not being expressed as such.
Read moreTax Tribunal has no jurisdiction to consider public law issues in direct tax appeal
The following is taken from an article by Adam Craggs, originally published in Tax Journal
Read moreClaim for entrepreneurs' relief succeeds: Tribunal finds that the removal from the payroll did not end taxpayer's employment
The First-tier Tribunal (Tax Chamber) (FTT) has decided in Corbett v HMRC[1] that removing a taxpayer from a company's payroll before a sale of that company did not end her employment for the purposes of claiming entrepreneur's relief.
Read moreTribunal rejects Ramsay argument and allows taxpayer's appeal in corporate bond case
In Hancock & Hancock v HMRC[1] the First-tier Tribunal (FTT) has upheld the taxpayer's appeal against HMRC's decision ...
Read moreTribunal bars HMRC from taking further part in appeal
In BPP University College of Professional Studies v HMRC[1]the First-tier Tribunal (Tax Chamber) (FTT) found that HMRC had failed to comply with an 'unless' order under Rule 8(3) of the Tribunal Procedure (First-tier Tribunal) (Tax Chamber) Rules 2009 (the Rules).
Read moreFirst-tier Tribunal holds that there is no taxable supply where there is no obligation on a subsidiary company which was receiving subsidiary services from the Group parent
In Norseman Gold plc v HMRC[1] the First-tier Tribunal (Judge Colin Bishopp) ("FTT") dismissed an appeal by Norseman Gold plc ("Norseman") ...
Read moreToasted sandwiches are standard-rated “hot food” for VAT purposes
In Sub One Ltd (t/a Subway) v HMRC[1] the Court of Appeal has upheld the decisions of both the First-tier Tribunal (FTT) and the Upper Tribunal (UT) that toasted sandwiches and "meatball marinara" are "hot food" and therefore, for VAT purposes, amount to standard-rated supplies. This decision has implications for a number of fast food outlets.
Read moreTreading uneven boards: VAT claims and setoff – Birmingham Hippodrome Theatre Trust Ltd v HMRC [2014] EWCA Civ 684
The Court of Appeal's decision in this case is likely to create a great deal of uncertainty for taxpayers seeking to recover unlawfully levied VAT from HMRC.
Read moreTrading "with a view to the making of a profit" - an objective or subjective test?
In Beacon Estates (Chepstow) Ltd v HMRC [2014] UKFTT 686 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') allowed the taxpayer's appeal, holding that 'with a view to' in section 393A(3), Income and Corporation Taxes Act 1988 ('ICTA')[1] imports an objective test when considering relief for trading losses.
Read moreThe Rangers Case and EBTs
The following was taken from a longer article by Robert Waterson and Adam Craggs originally published in Tax Journal (25 July 2014, pp16-17, www.taxjournal.com).
Read moreReasonable excuse
In the recent case Spink v HMRC[1] the First-tier Tribunal (Tax Chamber) ('FTT') allowed the taxpayer's appeal against the imposition of penalties by HMRC for late payment, as it was satisfied that the taxpayer concerned had a reasonable excuse for the late payment.
Read moreAn enquiry is as an enquiry does – HMRC's narrow interpretation of what constitutes an enquiry is rejected by the Upper Tribunal
The recent case of Portland Gas Storage Limited v The Commissioners for HMRC [2014] UKUT 0270 (TCC), considered two important questions: what is an enquiry? and what is a decision?
Read moreTaxpayer succeeds in loss relief claim
In Hamilton & Kinneil (Archerfield) Ltd and others v HMRC [2014] UKFTT 350 (TC), the First-tier Tribunal (Tax Chamber) ('FTT') held that a company which had not made a cash capital contribution to a limited liability partnership could nonetheless claim loss relief against its other profits in respect of losses incurred by the limited liability partnership.
Read moreHMRC fail to demonstrate negligence in tax planning case
In the case of R, A and M Gardiner v HMRC[1], the First-tier Tribunal (Tax Chamber) ('FTT') overturned penalties imposed by HMRC on the appellant taxpayers for negligently filing their returns.
Read moreHigh Court gives stamp of approval to retrospective anti-avoidance legislation
A challenge to the lawfulness of the retrospective effect of legislation amending section 45, Finance Act 2003 ('FA 2003'), fell at the first hurdle in a recent application for judicial review heard by Mrs Justice Andrews in R (on the application of St Matthews (West) Ltd and others) v HMRC [2014] EWHC 1848 (Admin).
Read moreInformation notices suspended by FTT to allow the taxpayers to seek judicial review
In Whitefields Golf Club Ltd & Others v HMRC,[1] the First-tier Tribunal (Tax Chamber) ('FTT') suspended the effect of its decision in relation to information notices issued by HMRC pursuant to paragraph 1, Schedule 36, Finance Act 2008 (the 'information notices') which it had, less than two months earlier, confirmed on appeal.
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