Tax Take
Tax fraud: The rise of the professional enabler
In this episode, we are joined by Simon York, Director of HMRC's Fraud Investigation Service (FIS). Created only five years ago, FIS has already secured 3,700 criminal convictions for serious fraud and protected over £25 billion in assets.
Read moreEuromoney – Tribunal considers 'main purpose' test
In Euromoney Institutional Investor PLC v HMRC [2021] UKFTT 0061 (TC), the First-tier Tribunal (FTT) upheld the appellant's appeal, finding that the avoidance of liability to tax was a purpose, but not the main purpose, or one of the main purposes, of the relevant arrangements, for the purposes of section 137(1), Taxation of Chargeable Gains Act 1992 (TCGA).
Read moreMehrban – Discovery assessments invalid due to staleness
In Kashif Mehrban v HMRC [2021] UKFTT 53 (TC) the First-tier Tribunal (FTT) held that a three-year delay in issuing a 'discovery' assessment issued pursuant to section 29,Taxes Management Act 1970 (TMA), resulted in the discovery becoming 'stale', even though the delay had not been the result of HMRC inaction.
Read moreTax Bites - May 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreDisputes Yearbook 2021: Criminal tax disputes
As part of the acclaimed Disputes Yearbook, Legal Business interviewed members of our disputes team exploring key areas of the market and what RPC brings to the table.
Read moreInmarsat Global – Upper Tribunal confirms successor company not entitled to capital allowances incurred by its predecessor on satellite launch costs
In Inmarsat Global Ltd v HMRC [2021] UKUT 59 (TCC), the Upper Tribunal (UT) upheld the First-tier Tribunal's (FTT) decision that a company was not eligible for capital allowances in relation to expenditure incurred by its predecessor on launching satellites into space.
Read moreFurlough, fraud and the FIS
Twenty episodes ago, in early summer last year, our Taxing Matters podcast focused on the newly emerging risk of furlough fraud. Now, nearly a year on (and three iterations of the Coronavirus Job Retention Scheme later) David Francis, Head of Tax Dispute Resolution at Grant Thornton, joins us to discuss this important and evolving topic.
Read moreCaught in the act
The furlough scheme has become ‘a magnet for fraudsters’. Adam Craggs and Alice Kemp outline the extensive powers HMRC can muster to investigate ‘high risk’ claims and to claw back any undue payments.
Read moreContentious tax quarterly review: April 2021
Rise in alternative dispute resolution Until relatively recently, HMRC imposed strict conditions on the timing of when an application for alternative dispute resolution (ADR) could be made, refusing to consider any application which was made after it had formally set out its position in its ‘statement of case’.
Read moreV@ update - April 2021
Welcome to the April 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreBalhousie - sale and leaseback does not constitute disposal of 'entire interest' in property
In Balhousie Holdings Ltd v HMRC [2021] UKSC 11, the Supreme Court allowed the taxpayer’s appeal, holding that a sale and leaseback was not a disposal of the taxpayer’s ‘entire interest’ in a care home and accordingly HMRC was not entitled to claw back the benefit of the VAT zero-rating that had applied when the taxpayer acquired the home.
Read moreBennedy's Developments – Tribunal allows taxpayer's appeal against daily penalties for late filing of ATED return
In Bennedy's Developments Ltd v HMRC [2021] UKFTT 21 (TC), the First-tier Tribunal (FTT) has allowed the taxpayer's appeal against daily penalties for late filing of an Annual Tax on Enveloped Dwellings (ATED) return, issued under paragraph 4 of Schedule 55 to the Finance Act 2009 (FA 2009), but dismissed its appeal against a late filing penalty in respect of the same return, issued under paragraph 5 of Schedule 55.
Read moreThe Trade-off: Reduced juror numbers in criminal trials
The backlog of criminal cases (especially for those relating to fraud) has increased considerably. It is reaching worrying levels resulting in administrative difficulties and substantial cost, both in financial and emotional terms.
Read moreOutram – Tribunal prevents HMRC from relying on new argument
In Outram and another v HMRC [2021] UKFTT 29 (TC) the First-tier Tribunal (FTT) prevented HMRC from relying on a new argument contained in its skeleton argument which had not been included in its statement of case.
Read moreEastern Power Networks – Court of Appeal confirms that HMRC does not need to close its enquiries
In Eastern Power Networks plc and others v HMRC [2021] EWCA Civ 283, the Court of Appeal (CofA) has upheld the Upper Tribunal's (UT) decision that it was not appropriate to direct HMRC to issue closure notices.
Read moreThe Common Reporting Standard: An HMRC game changer?
With now over 100 countries signed up to the international information exchange known as the Common Reporting Standard (CRS), last year HMRC received 84 million details of bank accounts covering one in 10 UK citizens.
Read moreTax Bites - April 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreBall Europe - Accounting entry not included in tax return sufficient to preclude discovery assessment
In Ball Europe Ltd v HMRC [2021] UKFTT 23 (TC), the First-tier Tribunal (FTT) has held that the presence of amounts in a taxpayer's accounts but not its tax return was sufficient for a 'hypothetical officer' of HMRC reasonably to be expected to be aware of a tax insufficiency and this prevented HMRC from issuing a valid discovery assessment
Read moreV@ update - March 2021
Welcome to the March 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreThe long arm of HMRC
Adam Craggs and Alice Kemp outline the powers HMRC has at its disposal when conducting a criminal rather than civil investigation.
Read moreQuentin Skinner – shares sold by trusts not eligible for entrepreneurs' relief
In HMRC v The Quentin Skinner 2005 Settlement L and others [2021] UKUT 29 (TCC), the Upper Tribunal (UT) has held that, for the purposes of entrepreneurs' relief (ER) (now business asset disposal relief), section 169J(4), Taxation of Chargeable Gains Act 1992 (TCGA) requires a beneficiary to have been a qualifying beneficiary throughout a period of one year ending no earlier than three years before the date of disposal of settlement business assets by the trustees.
Read moreThe future of judicial reviews… and what it means for your business
Described by a previous guest on Taxing Matters as “the last bastion of the citizen against the Government", the importance of judicial reviews cannot be overstated.
Read moreAtholl House Productions: BBC Presenter wins IR35 case
In HMRC v Atholl House Productions Ltd [2021] UKUT 0037 (TCC), the Upper Tribunal (UT) held that IR35 did not apply to a presenter who provided services to the BBC through a personal service company.
Read moreDitton – HMRC cannot issue daily late filing penalties retrospectively
In Ditton v HMRC [2021] UKFTT 489 (TC), the First-tier Tribunal (the FTT) held that daily late filing penalties, where notice was given by HMRC to the taxpayer after the period in respect of which the penalties were issued, were void; confirming that late filing penalties cannot be issued to taxpayers retrospectively.
Read moreTaxing Matters: International Women's Day Special
March 8th is International Women's Day, and to mark the occasion this special episode of the Taxing Matters podcast features five empowering women who have all strived to encourage diversity and inclusion in the workplace.
Read moreHMRC Crackdown on Covid-19 Fraud
In the March 2021 Budget, Chancellor Rishi Sunak announced the creation of a new major fraud taskforce, the Taxpayer Protection Taskforce, established as part of a wide-reaching crackdown on criminals exploiting UK government support schemes. The new taskforce represents one of the all-time largest responses to a fraud risk by HMRC.
Read moreHelpful guidance on the role of statements of case and Lists of Issues for Disclosure in applications to vary an order for Extended Disclosure under the Disclosure Pilot Scheme
The High Court in HMRC v IGE USA Investments Ltd and Ors [2020] EWHC 1716 (Ch) confirms jurisdiction to order specific disclosure under the Disclosure Pilot Scheme is not confined to issues identifiable from statements of case and where there is no agreed or approved List of Issues for Disclosure.
Read moreTax Bites - March 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreSSE Generation – Taxpayer's capital allowances victory marred by procedural issue
In HMRC v SSE Generation Ltd [2021] EWCA Civ 105, the Court of Appeal (CA) upheld the Upper Tribunal's (UT) decision that expenditure on parts of a hydroelectric power scheme was eligible for capital allowances, save for one element in respect of which the taxpayer had failed to seek permission to appeal part of the First-tier Tribunal's (FTT) decision.
Read moreV@ update - February 2021
Welcome to the February 2021 edition of RPC's V@, an update which provides analysis and news from the VAT world relevant to your business.
Read moreBradford – Tribunal refuses HMRC's application for further and better particulars
In Darren Bradford v HMRC [2021] UKFTT 2 (TC), the First-tier Tribunal (FTT) refused HMRC's application for the Appellant to provide further and better particulars of his grounds of appeal and directed HMRC to provide its Statement of Case.
Read moreCustoms and excise quarterly - February 2021
In this update we report on (1) HMRC's proposed new powers to combat illicit tobacco trading; (2) a policy paper setting out how the temporary and pre-lodgement models will operate to control goods coming from the EU to Great Britain; and (3) HMRC Guidance that can be used to check whether a business holds Authorised Economic Operator status.
Read moreTaxing Matters: Private prosecutions: an essential part of your business' toolkit
We are experiencing a surge in economic crime – the National Crime Agency estimates fraud alone costs UK businesses around £140 billion a year. With the CPS and SFO barely able to scrape the tip of the iceberg, many businesses have turned to private prosecutions to recoup losses and protect their reputation.
Read moreEmbiricos: HMRC cannot issue a partial closure notice without specifying the amount of tax due
In HMRC v Embiricos [2020] UKUT 370 (TCC), the Upper Tribunal (UT),in allowing HMRC's appeal, has held that HMRC cannot issue a partial closure notice without specifying how much tax is due.
Read moreWarshaw – Cumulative preference shares constituted ordinary share capital and qualified for entrepreneurs' relief
In HMRC v Stephen Warshaw [2020] UKUT 366 (TCC), the Upper Tribunal (UT) has upheld the First-tier Tribunal's (FTT) decision that cumulative preference shares with rights to compound accrued but unpaid dividends constituted "ordinary share capital" for the purposes of section 989, Income Tax Act 2007 (ITA) and therefore qualified for entrepreneurs' relief (ER).
Read moreTaxing Matters: Sanctions in a post-Brexit landscape
From the 1st January 2021 the new UK sanctions framework officially came into force under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA).
Read moreTax Bites - February 2021
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreRialas: UT dismisses HMRC's appeal in transfer of assets abroad case
Taxpayer succeeds in defending HMRC appeal against transfer of assets abroad / TOAA regime application; anti-avoidance measures did not apply, held the Upper Tribunal.
Read moreV@ update - January 2021
Welcome to the January 2021 edition of RPC's V@, an update on developments in the VAT world that may impact your business.
Read moreDevelopment Securities – Court of Appeal considers company tax residence
In HMRC v Development Securities PLC and Others [2020] EWCA Civ 1705, the Court of Appeal (CoA) has allowed HMRC's appeal against a decision of the Upper Tribunal (UT) and confirmed that certain Jersey based companies were resident in the UK, rather than in Jersey.
Read moreWhat "winning on a technicality" really means in disputes with HMRC and why technical points are very important
In the latest episode of the Taxing Matters podcast, Harry Smith gives a crash course in procedural arguments in the context of a dispute with HMRC.
Read moreProject Blue (No 2): HMRC must refund overpaid SDLT
In Project Blue Ltd v HMRC [2020] UKFTT 475 (TC), the First-tier Tribunal (FTT) held that the taxpayer was entitled to repayment of SDLT, as part of the consideration for the property in question was contingent, within the meaning of section 51, Finance Act 2003 (FA 2003) and was never paid.
Read moreCorporate Tax Update - January 2021
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from December 2020. Included in this update are summaries of an unexpected twist in the DAC6 saga, a call for evidence on VAT and the ‘sharing economy’, and the Court of Appeal decision in the Development Securities case. As ever we hope you, your family and friends are all staying safe.
Read moreThe new corporate criminal offence of failure to prevent tax evasion
In this episode, we are joined by Sam Dean, who spearheads HMRC's campaign to raise awareness of the corporate criminal offence of failure to prevent tax evasion.
Read moreLondon Clubs Management - non-negotiable chips and promotional vouchers not part of casino's "banker's profits" for the purpose of calculating gaming duty
In HMRC v London Clubs Management Ltd [2020] UKSC 49, the Supreme Court held that where casinos provide gamblers with non-negotiable chips and/or promotional vouchers (Non-negs) which could be used for gaming but not encashed or exchanged for goods or services, they do not form part of the casino's "banker's profits" for the purpose of calculating its liability to gaming duty.
Read moreEurochoice: Company and its director held jointly and severally liable for HMRC's costs
In Eurochoice Ltd v HMRC [2020] UKFTT 449 (TC), the First-tier Tribunal (FTT) has held that a company and its director are jointly and severally liable for HMRC's costs in circumstances where only the company was party to the appeal proceedings.
Read moreTotal – Court of Appeal considers meaning of "just and reasonable" apportionment of profits
In Total E&P North Sea UK Ltd and Another v HMRC [2020] EWCA Civ 1419, the Court of Appeal (CoA) allowed the appellant companies' appeal and decided that the basis of the companies' apportionment of adjusted ring-fence profits was just and reasonable, for the purposes of an election under section 7(5), Finance Act 2011 (FA 2011).
Read moreCumEx - probably the biggest tax scandal you've never heard of
In this episode, we are joined by Bloomberg finance reporter Donal Griffin. For the past 18 months Donal has been following the development of the multi-billion tax trading scandal known as CumEx.
Read moreMcCabe: HMRC not required to disclose documents relating to discussions with the Belgian tax authority
In Kevin McCabe v HMRC [2020] UKUT 266 (TC), the Upper Tribunal (UT) has held that the First-tier Tribunal (FTT) had been correct not to order HMRC to disclose documents relating to discussions it had with the Belgian tax authority, as the documents had no probative value and the tax authorities had raised confidentiality issues.
Read moreContentious tax: quarterly review - December 2020
HMRC is increasingly targeting multinationals, in particular by questioning their transfer pricing arrangements and ensuring that they are not artificially diverting profits away from the UK. Additionally, HMRC has made a number of arrests and begun criminal investigations in relation to suspected fraud concerning the coronavirus job retention scheme.
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