Tax Take
Reliance 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’...
Read moreA case of interest?
In Garnett Paul Curran v HMRC [2012] UKFTT 517 (TC), the First-tier Tribunal (‘FTT’) has given some helpful guidance on what constitutes interest...
Read moreClaim for overpaid VAT held not to be abusive
In St Martins Medical Services Limited v HMRC [2012] UK FTT 485 (TC), the First-tier Tribunal (‘FTT’) has recently allowed a claim for overpaid VAT made by a taxpayer,...
Read moreComposite transaction fails
In HP Schofield v HMRC [2012] EWCA Civ 927, the Court of Appeal has recently dismissed an appeal made by a taxpayer (the test case for over two hundred appeals) in relation to a tax mitigation strategy designed by PricewaterhouseCoopers (‘PwC’), which was intended to assist the taxpayer in mitigating a capital gain that would otherwise become due.
Read moreHMRC fails in its attempt to obtain disclosure of privileged documents
The important issue of disclosure of documents in the context of litigation before the First-tier Tribunal (Tax) (‘the FTT’) was recently considered in Peter A D Fisher, Stephen D Fisher and Anne P Fisher v HMRC [2012] UKFTT 335.
Read moreTwo wrongs do not make a right – criminal convictions and stolen data
On Friday 5 July 2012 HMRC announced that a wealthy property developer, who had failed to disclose a Swiss bank account to HMRC during a civil inquiry, had pleaded guilty to the serious charge of cheating the public revenue
Read moreHMRC – Not enough staff and too much uncollected tax
The Public Accounts Committee of the House of Commons (‘the PAC’) has published its 87th report (HC Session 2010-12) on HMRC’s Compliance and Enforcement Programme.
Read moreEclipse Film Partners No 35 – To trade or not to trade, that is the question!
The First-tier Tribunal (Tax Chamber) ('FTT') has recently held in Eclipse Film Partners No 35 LLP v HMRC [2012] UKFTT 270 (TC),...
Read moreRetrospective legislation: where are we now?
I commented last year on the important decision in Huitson, in which the Court of Appeal, hearing a joined appeal from two judicial review claims,...
Read moreTax tribunal prevents HMRC from broadening their attack on an SDLT return
The distinction between fixtures (which form part of the land) and chattels (which do not) can have significant consequences for stamp duty land tax ('SDLT') purposes.
Read moreAnother voyage of discovery by HMRC - hypothetical ignorance?
This month saw the release of yet another discovery assessment case: Sanderson v HMRC [2012] UKFTT 207 (TC).
Read moreAll taxpayers are equal, although some are more equal than others!
In the recent case of Spectrum Legal Services Limited v HMRC [2012] UKFTT 191 (TC), HMRC drew criticism from the First-tier Tribunal (Tax Chamber) ('Tribunal') over its refusal to treat two taxpayers, in similar circumstances, in the same way
Read moreTaxpayers are entitled to organise their affairs so that the minimum amount of tax is paid!
The recent decision of the First-tier Tax Tribunal ('FTT') in James Albert McLaughlin v The Commissioners for HM Revenue and Customs1, is a timely reminder that taxpayers are perfectly entitled to organise their affairs so that the minimum amount of tax is paid.
Read moreHMRC have to play by the rules too!
The recent decision of the First-tier Tax Tribunal ('the Tribunal') in Furukawa Electric Europe Limited v Revenue & Customs Commissioners [2012] UKFTT 129 (TC) ('Furukawa'),...
Read moreNo discovery – HMRC fail before the First-Tier Tribunal
HMRC's ability to raise 'discovery' assessments under section 29 of the Taxes Management Act 1970 ('TMA'), is a topical issue at the moment and there have been a number of important cases in recent months (see our previous blog here of30/01/12).
Read moreNo more 'sweetheart' deals with the taxman?
HMRC have recently announced new governance arrangements for "significant tax disputes".
Read moreHMRC run contrary arguments before the First-tier Tribunal!
In the recent case of Cobb v HMRC [2012] UK FTT 40 (TC), the First-tier Tribunal ('FTT') said that HMRC should be able to suspend all or part of a penalty imposed for a careless inaccuracy in a tax return of an individual...
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