Tax Take
High Court confirms accountant's duty to alert client to tax saving opportunity
The recent decision of Mr Justice Silber in Hossein Mehjoo v Harben Barker (A Firm) and Harben Barker Limited[1] has attracted a great deal of publicity in both professional journals and the general press as it considers the important issue of an accountant's duty to his client in the context of tax mitigation opportunities.
Read moreHMRC's approach to statutory interpretation – literally, if convenient!
There is a growing body of recent case law in which HMRC have favoured a literal approach to statutory interpretation, as opposed to the usual purposive approach they adopt when challenging what they consider to be 'aggressive' tax avoidance schemes.
Read moreTaxpayer wins penalty shootout against HMRC
The recent case of CED Limited v HMRC [2013] UKFTT 219 (TC) illustrates the importance of preparing thoroughly for the hearing of a tax appeal – even an apparently straightforward penalty appeal - before the First-tier Tribunal ('FTT').
Read moreWhen should a penalty be suspended?
The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Testa v HMRC,[1] against HMRC's refusal to suspend a penalty imposed under paragraph 1, Schedule 24, Finance Act 2007...
Read moreTribunal allows taxpayers' appeals against daily penalties as HMRC had failed to give proper notice
The First-tier Tribunal ('FTT') has allowed the taxpayers' joined appeals in Morgan v HMRC and Donaldson v HMRC1 against daily penalties for late filing of their self-assessment returns, because HMRC had failed to give notice to the taxpayers of the date from which the daily penalties would start to accrue.
Read moreTribunal allows taxpayer's appeal in share options case and criticises HMRC's 'mechanistic' approach to statutory interpretation
The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Bennedict Manning v HMRC.[1]
Read moreThe Goldman Sachs settlement – 'not a glorious episode in the history of the Revenue'
I commented, in my blog on 15 May 2013 on the continuing controversy surrounding HMRC's deal with Goldman Sachs, in which a large amount of interest that was properly recoverable from the bank was written off by HMRC.
Read moreInadequate deliberation or a case of mistake?
The so-called rule in Hastings-Bass1, which permits trustees to assert and rely on the errors of themselves or their advisors to undo actions which have unexpected tax consequences...
Read moreTax tribunal criticises HMRC's guidance in Catherine Rawcliffe v HMRC
This case1 is of interest not so much for the underlying legal issue which was determined but rather for the unusually strong criticism from the First-tier Tribunal ('FTT') of HMRC's published guidance on approved company securities option plans.
Read moreGoldman Sachs – the plot thickens!
Readers of our blog will be familiar with the controversy surrounding the now retired Dave Hartnett, former Permanent Secretary for Tax at HMRC (see postings of 19 December 2011 and 21 December 2011).
Read moreTermination payments: don't forget the breakdown
In an encouraging win for taxpayers, the First-tier Tribunal ('FTT') in Johnson v HMRC[1] allowed an appeal relating to a termination payment under a compromise agreement.
Read moreTribunal allows VAT appeal and accepts that letter was sent to HMRC
The First-tier Tribunal ('FTT') has allowed the taxpayer's appeal in Exeter Estates Ltd v HMRC[1] against a decision of HMRC that it had opted to tax all the land and buildings on one of its sites.
Read moreTribunal rejects purposive interpretation and allows taxpayer's appeal
The First-tier Tribunal ('FTT') has held in Fidex Ltd v HMRC,1 that a loan relationship debit should not be disallowed under paragraph 13, Schedule 9, Finance Act 1996 ('Paragraph 13'),2 even though one of the main purposes of entering into the arrangement was tax avoidance.
Read moreSDLT mitigation arrangement fails before the Tax Tribunal
The First-tier Tribunal ('FTT') has dismissed the taxpayer's appeal in Edward Allchin v HMRC.[1]
Read moreTax tribunal finds in favour of trustee
The recent case of The Trustee of the De Britton Settlement v HMRC [2013] UKFTT 106 (TC), illustrates the importance of evidence and proper preparation in tax appeals before the First-tier Tribunal ('FTT').
Read moreEaster thoughts and transfer pricing
Easter is a good time for reflection and balanced thinking and never have these qualities been so necessary as in the contentious area of tax, particularly where multinationals and the large corporates are concerned.
Read moreReliance on misleading information or guidance from HMRC can constitute a 'reasonable excuse'
In recent years, with the difficulties that many taxpayers have experienced in the current economic climate, the issue of 'time to pay' agreements with HMRC has become of greater concern.
Read moreFirst-tier Tribunal considers whether a single supply may be taxed at two VAT rates
When a taxpayer makes a supply of goods or services, it is not always clear cut whether there is more than one supply, or a single composite supply for VAT purposes.
Read moreECJ ruling in Grattan plc v Revenue and Customs Commissioners [2012] All ER (D) 246 (Dec)
The Court of Justice of the European ('ECJ') has recently confirmed the opinion of the Advocate General in Grattan Plc v HMRC.
Read moreTribunal finds for the taxpayer and concludes that a trade was being carried on
In the recent case of Albermale 4 LLP v HMRC,1 the First-tier Tribunal ('FTT') was called upon to consider the difficult question of the meaning of 'trade' for the purpose of section 262 Income Tax (Trading and Other Income) Act 2005 ('ITTOIA 2005').
Read moreLate expectations – taxpayers succeed in their application to appeal out of time
The 30 day time limit, contained in section 31A Taxes Management Act 1970 ('TMA 1970'), for giving notice of appeal against an amendment of a self-assessment contained in a closure notice is well known to tax practitioners
Read moreThe Prudential decision – implications for taxpayers
The Supreme Court has refused to extend legal advice privilege ('LAP') to legal advice given by professionals who are not lawyers.
Read moreTaxpayer misled by HMRC amidst settlement confusion
It is normally very clear to both parties when a tax dispute has been settled by way of agreement, but this is not always the case, especially when the 'agreement' was based on a misunderstanding.
Read moreCrown Prosecution Service announces major expansion of prosecutions for tax fraud
As announced in the national press this week (see e.g. the Financial Times Monday 21 January 2013) the Crown Prosecution Service ('CPS') has announced that it will increase five-fold the number of tax cases that it considers for criminal prosecution.
Read moreVictory for the taxpayers in the Charlton case as the UT confirms that HMRC's discovery assessments were unlawful
The eagerly awaited decision of the Upper Tribunal ('UT') in HMRC v Charlton, Corfield & another [2012] UK FTT 770, has now been delivered.
Read moreFact stranger than fiction - taxpayer succeeds in challenging finding of fact before the Upper Tribunal
The Upper Tribunal (Arnold J) has allowed the taxpayer's appeal in Joseph Okolo v HMRC [2012] UKUT 416 (TCC).
Read moreThe need for checks and balances
A recent article in the Daily Telegraph Newspaper "How one family were brought to their knees by the Taxman" by Alasdair Palmer
Read moreGreen light for TNT's judicial review
Unperturbed by the High Court's initial dismissal of their attempt to judicially review HMRC's VAT exemption for postal access services provided by Royal Mail
Read moreRangers 2 – 1 HMRC: Victory for the taxpayer in the Rangers EBT case
The long awaited decision of the First-tier Tribunal (‘FTT’) in the Rangers EBT case has now been delivered.1
Read moreTax avoidance scheme succeeds at the Upper Tribunal
The eagerly awaited decision of the Upper Tribunal (‘UT’) in the case of UBS AG and DB Group Services (UK) Limited v HMRC [2012] UKUT 320 (TCC) has now been released.
Read moreMea culpa?
In an interesting development that should be welcomed by company directors in particular, the First-tier Tribunal held in O'Rorke v HMRC [2011] UKFTT 839 that a subjective test of neglect applies...
Read moreLatest climb down – HMRC are not to be on the GAAR Panel
On 7 November 2012, HM Treasury announced that HMRC will not be represented on the General Anti-Abuse Rule (‘GAAR’) Advisory Panel (‘the Panel’).
Read moreThe Upper Tribunal dismisses HMRC’s appeal in SDLT sub-sale mitigation case
The Upper Tribunal (Henderson J) has dismissed HMRC’s appeal in HMRC v DV3 RS Limited Partnership [2012] UKUT 399 (TCC), a stamp duty land tax (‘SDLT’) mitigation case involving a sub-sale to a partnership.
Read moreTaxpayer wins on purposive interpretation
In recent years, it is usually HMRC pressing the courts to identify the purpose of the legislation and to reject a narrow interpretation of the legislation.
Read moreCourt strikes out HMRC’s claim in alleged VAT fraud
In the recent decision of the High Court (Warren J) in the case of Revenue and Customs Comrs v Sunico A/S and ors [2012] All ER (D) 172, which involved a claim brought by HMRC alleging conspiracy to deprive HMRC of VAT through missing trader fraud, the Court ruled that the defendants were entitled to summary judgment and struck out HMRC’s claim.
Read moreCourt quashes HMRC warrants
The recent decision of the Divisional Court (Pitchford LJ and Foskett J) in the case of R (on the application of Anand) v HMRC (unreported) has shed further light on the circumstances in which the Courts will quash search warrants granted to HMRC in the course of a criminal investigation into a taxpayer.
Read moreTax win puts McLaren in pole position!
The glamorous world of Formula One does not often collide with the more cerebral realm of the First-tier Tribunal (‘FTT’), but this is precisely what happened in McLaren Racing Limited v HMRC [2012] UKFTT 601 (TC).
Read moreIs the UK becoming a tax-haven?
The FT has recently reported (see “Favourable tax draws companies to Britain” - 7 October 2012)
Read moreSDLT sub-sale arrangement fails on implementation
The First-tier Tribunal (‘FTT’) has recently released its much anticipated decision in Vardy Properties and Vardy Properties (Teeside) Limited v HMRC [2012] UKFTT 564 (TC), an SDLT mitigation case involving a sub-sale of property into a distribution in specie.
Read moreTaxpayer succeeds in employment status case
In Slush Puppie Limited v HMRC [2012] UKFTT 356 (TC), the First-tier Tribunal (‘FTT’) has confirmed the process that it should go through in determining whether a person is employed or self-employment.
Read moreCosts against HMRC – the importance of getting your arguments right
There have been a number of cases addressing the powers of the First-tier Tribunal (‘FTT’) in respect of the awarding of costs since the FTT was established in 2009.
Read moreSignificant watering down of anti-avoidance legislation
On 30th July 2012 HMRC released a consultation document entitled “Reform of two anti-avoidance provisions:
Read moreBringing it all back home – Tribunal rejects HMRC’s arguments on remittances
In Pflum v HMRC [2012] UKFTT 365 (TC), the First-tier Tribunal (‘FTT’) has found in favour of the taxpayer in a recent appeal concerning taxation of remittances from overseas under section 26 of the Income Tax (Earnings and Pensions) Act 2003 (‘ITEPA’).
Read moreBehind closed doors: HMRC denied access to Charman papers
In the recent case of HMRC v Charman [2012] EWHC 1448 (Fam), HMRC failed in their bid to obtain documents produced in a high profile divorce case.
Read moreNational Insurance – not just another income tax
From most peoples’ perspective, national insurance is simply income tax by another name.
Read morePlain sailing for taxpayer in judicial review case
Although the recent case of Cameron & others v Revenue and Customs [2012] EWHC 1174 (Admin) related to the narrow area of Foreign Earnings Deduction (‘FED’) for seafarers,...
Read moreCompanies move back in, but lightning won’t strike twice
Against the backdrop of the huge success of the 2012 Olympics, HMRC have received some encouraging news that the extensive reforms introduced to the taxation of the foreign profits of companies over the last five years is starting to bear fruit.
Read moreHMRC's consulation – "Lifting the lid on tax avoidance schemes”
On 23 July 2012 HMRC published a consultation document “Lifting the lid on tax avoidance schemes”.
Read moreBrown v InnovatorOne Plc – good news for advisers involved in tax mitigation structures
A recent judgment of the High Court in Andrew Brown and ors v InnovatorOne plc and Ors [2012] EWHC 1321 (Comm) is welcome news for professional advisers who may have acted for clients involved in the design, implementation or distribution of tax efficient arrangements.
Read moreInformation Commissioner investigates HMRC over whistleblower enquiry
An interesting article appeared in the Guardian newspaper (Thursday 7 June 2012) which reignites previous controversies, which we have commented upon, concerning ‘sweetheart deals’...
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