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Tax Take

Blog

Tribunal confirms tax relief for expenditure incurred on R&D

Published on 10 June 2015. By Adam Craggs, Partner

In Pyreos Ltd v HMRC[1], the taxpayer has successfully appealed HMRC's decision to disallow tax relief for expenditure incurred on research and development ("R&D").

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Publication

Tax update

03 June 2015

Types of financial insitutitons and automatic exchange of information

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Blog

Defendants receive custodial sentences for contempt of court in VAT case

03 June 2015

In the recent case of HMRC v Munir & Others[1], HMRC successfully applied to the Court for committal of three company officers for contempt of court where an order appointing a provisional liquidator was knowingly breached.

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Blog

Tribunal concludes that HMRC's information request was too vague and ambiguous

Published on 28 May 2015. By Adam Craggs, Partner

There were two matters before the First-tier Tribunal (Tax Chamber) ("FTT") in Couldwell Concrete Flooring Limited v HMRC[1].

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Publication

VAT update

27 May 2015

Digital Single Market Strategy published by European Commission

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Blog

Expert witnesses required to disclose professional relationship

Published on 20 May 2015. By Adam Craggs, Partner

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.

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Blog

Tribunal orders HMRC to pay taxpayers' costs in avoidance case

Published on 13 May 2015. By Adam Craggs, Partner

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].

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Blog

Court of Appeal issues guidance on the meaning of "sham" in pension scheme case

Published on 07 May 2015. By Robert Waterson, Legal Director

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".

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Blog

Burden of proof for information notices on taxpayer

Published on 30 April 2015. By Adam Craggs, Partner

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.

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Blog

High Court dismisses negligence claim as taxpayer did not stand up to tax authority!

Published on 23 April 2015. By Adam Craggs, Partner

Law firm Baker & McKenzie LLP (the "Tax Advisers") have successfully defended a claim brought against them for losses arising out of negligent tax advice.

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Blog

Taxpayer succeeds in his application for judicial review of HMRC's decision not to return overpaid income tax

16 April 2015

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.

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Blog

Upper Tribunal imposes penalty in excess of £1 million on QC for failure to comply with information notices

Published on 08 April 2015. By Adam Craggs, Partner

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.

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Blog

Success for successor company in tax appeal

02 April 2015

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 ...

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Blog

Avoidance scheme effective despite HMRC's attempt to rely on Ramsay

Published on 25 March 2015. By Adam Craggs, Partner

In Gemsupa Limited and Consolidated Property Wilmslow Limited v HMRC [2015] UKFTT 0097 (TC) ...

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Blog

Tribunal confirms no penalty for implementing tax avoidance scheme

18 March 2015

In the recent case of Herefordshire Property Company Ltd v HMRC1, the First-tier Tribunal (Tax Chamber) ("FTT") allowed the taxpayer's appeal ...

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Blog

Tribunal finds in favour of property developer who was not trading

11 March 2015

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.

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Blog

Tax avoidance scheme succeeds before the Upper Tribunal

Published on 04 March 2015. By Robert Waterson, Legal Director

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).

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Blog

Taxpayer successfully relies on human rights argument to defeat HMRC following the taxation of the same profits twice

27 February 2015

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").

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Blog

High Court criticises HMRC's conduct and compels it to honour its undertakings

Published on 19 February 2015. By Kristiana Reynolds, Associate

The published judgment in Abbey Forwarding[1] will not make for comfortable reading for HMRC.

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Blog

"Horse play" – Tribunal concludes that racehorse ownership was a gamble and not a trade and rejects the taxpayer's loss relief claim

13 February 2015

In recent years, there has been a seemingly unending string of cases relating to whether certain activities constitute trading.

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Blog

Out of court settlement may lead to adjustment in CGT liability

Published on 05 February 2015. By Robert Waterson, Legal Director

The Court of Session has found in favour of the taxpayer in Sir Fraser Morrison v HMRC[1] ...

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Blog

FTT decision pays dividends for Mr and Mrs Jones

29 January 2015

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.

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Blog

CJEU confirms UK failed to comply with EU law by retroactively curtailing rights of taxpayers to recover tax unlawfully paid

22 January 2015

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.

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Blog

HMRC Dishonesty Allegation "seriously flawed"

Published on 14 January 2015. By Kristiana Reynolds, Associate

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".

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Blog

Tribunal sets aside witness summonses due to misrepresentation and failure in duty to make full and frank disclosure to the Tribunal

08 January 2015

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].

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Blog

2014 – The year that was

16 December 2014

Seasonal greetings to all of our readers! 2014 has been another busy year for the RPC Tax Take team.

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Blog

Tribunal adopts a literal interpretation of the provisions in allowing the taxpayer's appeal

11 December 2014

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.

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Blog

HMRC's information notice was too vague

04 December 2014

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).

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Blog

HMRC mislead appellants into believing they have a remedy in the Tribunal in contractual settlement dispute

Published on 28 November 2014. By Kristiana Reynolds, Associate

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.

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Blog

HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED

19 November 2014

HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED - GSM EXPORT (UK) LTD (IN ADMINISTRATION) AND ANOTHER v HMRC[1]

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Blog

HMRC's application for security for costs refused

19 November 2014

HMRC'S APPLICATION FOR SECURITY FOR COSTS REFUSED - GSM EXPORT (UK) LTD (IN ADMINISTRATION) AND ANOTHER v HMRC[1]

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Blog

Applicants for search warrants must make full and frank disclosure to the court

Published on 14 November 2014. By Adam Craggs, Partner

The following is taken from an article by Adam Craggs, originally published in Tax Journal on 31 October 2014.

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Blog

Applicants for search warrants must make full and frank disclosure to the court

Published on 14 November 2014. By Adam Craggs, Partner

The following is taken from an article by Adam Craggs, originally published in Tax Journal on 31 October 2014.

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Blog

Tribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC

Published on 07 November 2014. By Robert Waterson, Legal Director

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 ...

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Blog

Tribunal orders HMRC to pay taxpayer's costs – Ian Elder v HMRC

Published on 07 November 2014. By Robert Waterson, Legal Director

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.

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Blog

Tax Tribunal confirms the time period in which HMRC must open an enquiry

30 October 2014

As readers will be aware, HMRC generally has twelve months from the date a company files a return to open an enquiry[1].

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Blog

FTT prevents HMRC from having two bites of the cherry!

Published on 22 October 2014. By Daniel Wyatt, Senior Associate

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 ...

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Blog

GMAC's strategy for limiting VAT payments proved lawful in ECJ

Published on 16 October 2014. By Robert Waterson, Legal Director

The following is taken from an article by Robert Waterson and Nigel Brook, originally published in International Tax Review (12 September 2014).

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Blog

HMRC lose employment status case

Published on 09 October 2014. By Kristiana Reynolds, Associate

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.

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Blog

Tribunal allows taxpayer to make a late appeal and rejects HMRC's overly formalistic approach

01 October 2014

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.

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Blog

Tax Tribunal has no jurisdiction to consider public law issues in direct tax appeal

Published on 24 September 2014. By Adam Craggs, Partner

The following is taken from an article by Adam Craggs, originally published in Tax Journal

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Blog

Claim for entrepreneurs' relief succeeds: Tribunal finds that the removal from the payroll did not end taxpayer's employment

17 September 2014

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.

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Blog

Tribunal rejects Ramsay argument and allows taxpayer's appeal in corporate bond case

12 September 2014

In Hancock & Hancock v HMRC[1] the First-tier Tribunal (FTT) has upheld the taxpayer's appeal against HMRC's decision ...

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Blog

Tribunal bars HMRC from taking further part in appeal

04 September 2014

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).

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Blog

First-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

27 August 2014

In Norseman Gold plc v HMRC[1] the First-tier Tribunal (Judge Colin Bishopp) ("FTT") dismissed an appeal by Norseman Gold plc ("Norseman") ...

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Blog

Toasted sandwiches are standard-rated “hot food” for VAT purposes

21 August 2014

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.

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Blog

Treading uneven boards: VAT claims and setoff – Birmingham Hippodrome Theatre Trust Ltd v HMRC [2014] EWCA Civ 684

Published on 14 August 2014. By Robert Waterson, Legal Director

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.

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Blog

Trading "with a view to the making of a profit" - an objective or subjective test?

Published on 06 August 2014. By Daniel Wyatt, Senior Associate

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.

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Blog

The Rangers Case and EBTs

Published on 31 July 2014. By Robert Waterson, Legal Director and Adam Craggs, Partner

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).

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Blog

Reasonable excuse

24 July 2014

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.

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