Category: Taxes Management

H, Regina (on the Application of) v Commissioners of Inland Revenue: Admn 23 Oct 2002

The appellant sought judicial review of the seizure by the respondents of computers found on its premises in the course of executing warrants under the Act, even though the computers might contain other matters not relevant to any investigation.
Held: It had been impossible to make arrangements at the appellant’s home to copy the hard disks. The computers’ hard discs were documents within the provisions, but the 1970 Act provided for seizure of ‘any things whatsoever’. The computer was to be seen itself as a ‘thing’ rather than as a holder of files.
Stanley Burnton J considered that a computer could be a ‘document’ for the purposes of the Taxes Management Act 1970 in which ‘document’ is defined in the same terms as section 114(2) FA 2008: ‘For these reasons, even if I were free to do so, I would not differ from the conclusion reached by the Divisional Court in Da Costa. In any event, I do not think that Da Costa is distinguishable. While it is true that for the purposes of VATA a hard disk is a ‘document’, it is equally a ‘thing’, and in my judgment would be subject to a power of seizure in paragraph 10(3) of Schedule 11 to that Act even without the extended definition of ‘document’.’

Judges:

Stanley Burton J

Citations:

Times 08-Nov-2002, Gazette 28-Nov-2002, [2002] EWHC 2164 (Admin), [2002] Po LR 350, 75 TC 377, [2002] BTC 459, [2002] STI 1395, [2002] STC 1354

Links:

Bailii

Statutes:

Taxes Management Act 1970 20C

Jurisdiction:

England and Wales

Citing:

Cited – Regina v Chesterfield Justices and Others, Ex Parte Bramley QBD 10-Nov-1999
When police officers executed a search warrant, it was not proper to remove articles at large, in order later to sift through them, and then to return material not covered by the warrant. There is no absolute prohibition against removing articles . .
Cited – Da Costa and Co (a Firm) and Collins v Thames Magistrates Court and H M Commissioners of Customs and Excise QBD 25-Jan-2002
The claimant sought to challenge search warrants issued by the respondents. The warrants were criticised as being too widely drawn, and in breach of the 1984 Act. Criticism was also made of the implementation of the searches, in the use of excess . .

Cited by:

Approved – Faisaltex Ltd and others, Regina (on the Application of) v Crown Court Sitting at Preston and others etc Admn 21-Nov-2008
Nine claimants sought leave to bring judicial review of the issue of search warrants against solicitors’ and business and other premises, complaining of the seizure of excluded material and of special procedure material. There were suspicions of the . .
Cited – Glenn and Co (Essex) Ltd), Regina (on The Application of) v HM Revenue and Customs Admn 18-Jun-2010
The company objected to the search of its offices and removal by the defendant of its computers, the officers having entered without any warrant purporting to use powers under the 1989 Act.
Held: The request for judicial review failed. The . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Evidence

Updated: 06 July 2022; Ref: scu.178015

Volaw Trust and Corporate Services Ltd and Others v The Office of The Comptroller of Taxes and Another: PC 17 Jun 2019

(From the Royal Court of Jersey and the Court of Appeal of Jersey) A number of questions about the scope and effect of the privilege against self-incrimination as it applies, first, under article 6 of the European Convention on Human Rights, and secondly, under the customary law of Jersey.

Judges:

Lord Reed, Lord Kerr, Lord Sumption, Lord Carnwath, Lord Hodge, Lady Arden, Lord Kitchin

Citations:

[2019] UKPC 29

Links:

Bailii, Bailii Summary

Jurisdiction:

England and Wales

Human Rights, Taxes Management

Updated: 06 July 2022; Ref: scu.638487

Davies and Another, Regina (on The Application of) v HM Revenue and Customs: CA 16 Feb 2010

The parties disputed the interpretation of a booklet issued by the Revenue (IR20) as it defined the phrase ‘ordinarily resident’. In particular the taxpayer complained of an unannounced change of practice made after they had arranged their lives relying upon IR20.

Judges:

Lord Justice Ward, Lord Justice Dyson and Lord Justice Moses

Citations:

[2010] STC 860, [2010] STI 485, [2010] WTLR 681, [2010] BTC 198, [2010] EWCA Civ 83

Links:

Bailii, Times

Jurisdiction:

England and Wales

Citing:

Cited – Davies and Another v Revenue and Customs CA 10-Jul-2008
The claimants said that they had ceased to be resident in the UK and therefore were no longer liable to be taxed here. . .
Cited – Davies and Another v Revenue and Customs CA 11-Apr-2008
. .
Leave – Gaines-Cooper v Revenue and Customs CA 23-Oct-2008
Renewed application for permission to pursue a second appeal in order to challenge an order of Lewison J, dated 13 November 2007, upholding a decision of the Special Commissioners that the appellant was domiciled in England and Wales in the relevant . .

Cited by:

Appeal from – Davies and Another, Regina (on The Application of) v Revenue and Customs SC 19-Oct-2011
The Revenue had published a booklet, IR20, setting out their approach to the interpretation of the phrases ‘residence’ and ‘ordinary residence’. The taxpayer said that this was a more generous definition than the statutory one, and that having acted . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 01 July 2022; Ref: scu.400994

Brenner v Revenue and Customs; In re Modern Jet Support Centre Ltd: ChD 21 Jul 2005

The court was asked whether the process of distraint against goods for unpaid tax under section 61 of the 1970 Act is an ‘execution’ within section 183 of the 1986 Act which applies where a creditor has issued, but not completed, execution against the goods or land of a company which is subsequently wound up.
Held: Where there had been no change in the underlying policy, a court was able to look, with care, at cases prior to a statute consolidating earlier provisions. Parliament here had not taken an opportunity to move from the earlier position. ‘There is no repugnancy between the provisions of section 61 TMA 1970 and the provisions of IA 1986 which I have considered, in particular sections 107 and 175. The word ‘execution’ in section 183 IA 1986 does not include a distress under section 61 TMA 1970.’

Judges:

Warren J

Citations:

[2005] EWHC 1611 (Ch), Times 19-Sep-2005

Links:

Bailii

Statutes:

Taxes Management Act 1970 61, Insolvency Act 1986 183

Jurisdiction:

England and Wales

Citing:

Cited – Hutchins v Chambers 1758
Distress under the Poor Relief Act 1601 and other like Acts is only partly analogous to common law distress but is much more analogous to common execution; such distress was described as in the nature of an execution. . .
Cited – Potts v Hickman HL 1941
The Plaintiff was the landlord of certain premises and had as at 29 September 1938, a right to distrain for unpaid rent in the sum of andpound;15 11s. However, on 20 September, the defendant, as bailiff for Wolverhampton Corporation, had levied on . .
Cited – In re Overseas Aviation Engineering(GB) Ltd CA 1963
A charging order on land under section 35(1) of the 1956 Act obtained to enforce a judgment debt was a form of ‘execution’ for the purposes of section 325 CA 1948. Lord Denning MR: ‘The word ‘execution’ is not defined in the Act. It is, of course, a . .
Cited – Herbert Berry Associates Ltd v Inland Revenue Commissioners ChD 1976
The collector of taxes distrained on the goods of the company under section 61 TMA 1970 for unpaid taxes and the company entered into a walking possession agreement. Before the collector had sold the goods, and completed the distress, the company . .
Cited – Herbert Berry Associates Ltd v Inland Revenue Commissioners; re Herbert BerrySP, Regina (on The Application of) v The Lord Chancellor HL 1977
The principle to the effect that the court should exercise its discretion to restrain a distress levied by a landlord before the commencement of a winding-up only where there were special circumstances rendering it inequitable that he should be . .
Cited – In re a Debtor (No 784 of 1991) 1992
The court considered how earlier cases were to be considered given that the 1986 Act was intended to be a complete and self contained code: ‘Those authorities show that, in approaching the language of the 1986 Act, one must pay particular attention . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Taxes Management

Updated: 01 July 2022; Ref: scu.228966

Guthrie (Inspector of Taxes) v Twickenham Film Studios Ltd: ChD 27 Sep 2002

The inspector had issued an assessment under the section to recover a tax rebate incorrectly made to the tax payer. The taxpayer appealed.
Held: The inspector claimed the repayment had been in error. The Act made that reclaim discretionary. The commissioners had decided that the reclaim was itself a mistake. However their decision which was expressed to be made ‘on the facts’ indicated that they thought themselves to have an appellate or reviewing jurisdiction. They did not. The discretion could not be exercised afresh.

Judges:

Lloyd J

Citations:

Times 07-Oct-2002, Gazette 24-Oct-2002

Statutes:

Taxes Management Act 1970 30

Jurisdiction:

England and Wales

Taxes Management

Updated: 29 June 2022; Ref: scu.177330

Inland Revenue and Another v Deutsche Morgan Grenfell Group Plc: CA 4 Feb 2005

The company sought repayment of excess advance corporation tax payments made under a mistake of law. The question was the extent of the effect of the ruling in Klienwort Benson, in particular whether it covered sums paid as taxation, and how the law of limitation was to be allowed for.
Held: Money paid under a mistake as to law was subject to restitution either where the demand had been unlawful even though it was a payment of tax, but such a claim was subject to limitation laws, or under section 33 of the 1970 Act where the demand was lawful. The Kleinwort Benson case could not be used to make such a claim.

Judges:

Buxton, Rix, Jonathan Parker LJJ

Citations:

[2005] EWCA Civ 78, Times 15-Feb-2005

Links:

Bailii

Statutes:

Taxes Management Act 1970 33, Limitation Act 1980

Jurisdiction:

England and Wales

Citing:

Cited – Woolwich Equitable Building Society v Inland Revenue Commissioners (2) HL 20-Jul-1992
The society had set out to assert that regulations were unlawful in creating a double taxation. It paid money on account of the tax demanded. It won and recovered the sums paid, but the revenue refused to pay any interest accrued on the sums paid. . .
Appeal from – Deutsche Morgan Grenfell Group Plc v The Commissioners of Inland Revenue, HM Attorney General ChD 18-Jul-2003
The taxpayer sought to bring an action for restitution by the revenue of sums paid under a mistake of law. Under the Metallgesellschaft decision, rights of election for recovery of overpaid tax applied only between UK resident companies.
Held: . .
Cited – Metallgesellschaft Ltd and Others v Inland Revenue Commissioners and Another Hoechst Ag and Another v Same ECJ 8-Mar-2001
The British law which meant that non-resident parent companies of British based businesses were not able to recover interest on payments of advance corporation tax, was discriminatory against other European based companies. Accordingly the law was . .
Cited – Kleinwort Benson Ltd v Lincoln City Council etc HL 29-Jul-1998
Right of Recovery of Money Paid under Mistake
Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap . .
Cited – British Steel Plc v Her Majesty’s Commissioners for Customs and Excise CA 20-Dec-1996
The claimant company paid excise duty on hydrocarbon oil used in its blast furnaces, whilst consistently contending that it was entitled to relief under section 9(1) of that Act on the ground that the oil was not used as fuel. The Commissioners . .
Cited – Marcic v Thames Water Utilities Limited HL 4-Dec-2003
The claimant’s house was regularly flooded by waters including also foul sewage from the respondent’s neighbouring premises. He sought damages and an injunction. The defendants sought to restrict the claimant to his statutory rights.
Held: The . .
Cited – Eagerpath Ltd v Edwards (HM Inspector of Taxes) CA 14-Dec-2000
Where the special commissioner had determined that the dispute had been concluded by agreement, the taxpayer was precluded from appealing that decision claiming an ‘error or mistke’ That issue was not one relating to the computation of profits in . .
Cited – Mallusk Cold Storage Ltd v Department of Finance and Personnel QBNI 29-Aug-2003
The first plaintiffs constructed premises which were rated as from 1 April 1987. Having taken advice, they appealed the rating assessment on the ground that the premises were industrial premises, and had a nil rateable value. The appeal was . .
Cited – D B Ramsden and Co Ltd v Nurdin and Peacock Plc and Another ChD 14-Sep-1998
The tenant overpaid rent, including a payment in May 1997 on advice that the payment would be recoverable following litigation establishing that it was an overpayment. The court later held that the payments in question were indeed overpayments. The . .

Cited by:

Cited – Autologic Holdings Plc and others v Commissioners of Inland Revenue HL 28-Jul-2005
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by . .
Appeal from – Deutsche Morgan Grenfell Group Plc v Inland Revenue and Another HL 25-Oct-2006
The tax payer had overpaid Advance Corporation Tax under an error of law. It sought repayment. The revenue contended that the claim was time barred.
Held: The claim was in restitution, and the limitation period began to run from the date when . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Equity, Limitation

Updated: 29 June 2022; Ref: scu.222200

Taylor v HM Inspector of Taxes: SCIT 9 Dec 2004

SCIT INCOME TAX – notices to produce documents and provide information – TMA 1970 s 19A – taxpayer agreeing to provide documents and information relating to income and claimed deductions – appeal stood over for further consideration of demand for documents relating to expenditure.

Citations:

[2004] UKSC SPC00448

Links:

Bailii

Statutes:

Taxes Management Act 1970 19A

Taxes Management

Updated: 28 June 2022; Ref: scu.221422

Inspector of Taxes v Pumahaven Ltd: ChD 2002

The taxpayer appealed for permission to postpone payment of Corporation Tax pending determination of an appeal on that assessment. The application was refused.

Judges:

Park J

Citations:

[2002] STC 1423

Jurisdiction:

England and Wales

Citing:

Appealed to – Inspector of Taxes v Pumahaven Ltd CA 8-May-2003
The taxpayer company wanted to appeal an assessment to corporation tax. It applied for a postponment of some part of the tax pending the appeal. That was refused, and it appealed to the high court. The revenue now appealed that court’s decision . .

Cited by:

Appeal from – Inspector of Taxes v Pumahaven Ltd CA 8-May-2003
The taxpayer company wanted to appeal an assessment to corporation tax. It applied for a postponment of some part of the tax pending the appeal. That was refused, and it appealed to the high court. The revenue now appealed that court’s decision . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 28 June 2022; Ref: scu.182362

Claimants under the Loss Relief Group Litigation Order v Inland Revenue Commissioners: ChD 3 Mar 2004

Various claimants sought to have issues of law on group relief and other issues settled under a group litigation order.
Held: The High Court had no jurisdiction to hear such matters until they had first been raised in ordinary tax appeals before the special or general commissioners. Courts do not decide questions of principle which went as to liability. Such questions were for the commissioners first. The application was refused.

Judges:

Park J

Citations:

Times 10-Mar-2004, Gazette 25-Mar-2004

Jurisdiction:

England and Wales

Citing:

Applied – Glaxo Group Ltd and Others v Inland Revenue Commissioners ChD 21-Nov-1995
A tax adjustment can be made by the Inland Revenue on an open assessment following transfer pricing enquiry and direction, even after many years. The court considered that the jurisdiction of the special and the general commissioners to determine . .
Cited – Regina v Her Majesty’s Commissioners of Inland Revenue ex parte Bishopp (for and on Behalf of Partners In Price Waterhouse (a Firm)) Admn 27-Apr-1999
A court cannot answer questions in abstract form. An accountancy practice seeking an answer to how it would be taxed if incorporated as a limited partnership off-shore could not rely upon the court to answer a hypothetical question. . .
See Also – NEC Semi-Conductors Limited and Other Test Claimants v The Commissioners of Inland Revenue ChD 24-Nov-2003
UK companies were subsidiaries of companies resident abroad, and complained that they were unable to make group income elections.
Held: The prohibition infringed non-discrimination provisions of double taxation agreements – non-discrimination . .

Cited by:

Appeal from – Loss Relief Group, Test Claimants In v Inland Revenue CA 28-May-2004
The taxpayers sought determination by the court of their various claims for group tax relief. The High Court had declined jurisdiction.
Held: The appeal was allowed. The judge’s attitude was one which would perhaps appeal to most lawyers . .
See Also – NEC Semi-Conductors Limited and Other Test Claimants v The Commissioners of Inland Revenue ChD 24-Nov-2003
UK companies were subsidiaries of companies resident abroad, and complained that they were unable to make group income elections.
Held: The prohibition infringed non-discrimination provisions of double taxation agreements – non-discrimination . .
At First Instance – Autologic Holdings Plc and others v Commissioners of Inland Revenue HL 28-Jul-2005
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by . .
Lists of cited by and citing cases may be incomplete.

Litigation Practice, Taxes Management, Corporation Tax

Updated: 28 June 2022; Ref: scu.194525

Tootal Broadhurst Lee Co Ltd v Inland Revenue Commissioners: HL 1949

Fees received for the use of the taxpayer’s productive plant were not income from investment.
Lord Norman defined the meaning of ‘investment’, saying: ‘The meaning of ‘investment’ is its meaning, not in the vernacular of the man in the street, but in the vernacular of the business man. It is a form of income-yielding property which the businessman, looking at the total assets of the company, would single out as an investment. It certainly does not include all the property of the company and I am unable to accede to the proposition . . that every item of the company’s property is an investment, and that while the company uses those items itself the profit derives from them is a profit of trade, but, if it hands one of them over to others to use in return for a periodic payment, it begins to receive an income from an investment. The business man would not limit income from investments to income from the kinds of securities which are quoted on the stock exchange, and he would, I think, regard as income from investment a profitable rent from a sub-lease of office premises or the like surplus to the company’s requirements.’

Judges:

Lord Norman

Citations:

[1949] 1 All ER 261

Jurisdiction:

England and Wales

Cited by:

Cited – HM Revenue and Customs v A M Brander As Exec of The Will of The Late Fourth Earl of Balfour UTTC 16-Aug-2010
UTTC Inheritance tax – Exempt transfers and relief – Business property relief Replacement property – Deceased having liferent interest in family estate – Deceased declared to be fee simple proprietor of the . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 28 June 2022; Ref: scu.466793

Furniss (Inspector of Taxes) v Dawson: HL 9 Feb 1983

The transfer of shares to a subsidiary as part of a planned scheme immediately to transfer them to an outside purchaser was regarded as a taxable disposition to the outside purchaser rather than an exempt transfer to a group company. In defined conditions, including a preordained series of transactions including steps with no commercial or business purpose apart from the avoidance of a liability to tax, the court must look at the end result of a series of transactions: precisely how it would be taxed depended on the terms of the taxing statute.
Lord Brightman said: ‘First, there must be a pre-ordained series of transactions, or, if one likes, one single composite transaction. This composite transaction may or may not include the achievement of a legitimate commercial (i.e. business) end . . Secondly, there must be steps inserted which have no commercial (business) purpose apart from the avoidance of a liability to tax–not ‘no business effect.’ If those two ingredients exist, the inserted steps are to be disregarded for fiscal purposes. The court must then look at the end result. Precisely how the end result will be taxed will depend on the terms of the taxing statute sought to be applied.’
Lord Fraser said: ‘The true principle of the decision in Ramsay was that the fiscal consequences of a pre ordained series of transactions, intended to operate as such, are generally to be ascertained by considering the result of the series as a whole, and not by dissecting the scheme and considering each individual the dual transaction separately.’

Judges:

Lord Brightman, Lord Fraser

Citations:

[1984] 1 All ER 530, [1984] AC 474, [1983] UKHL 4

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Extended – W T Ramsay Ltd v Inland Revenue Commissioners HL 12-Mar-1981
The taxpayers used schemes to create allowable losses, and now appealed assessment to tax. The schemes involved a series of transactions none of which were a sham, but which had the effect of cancelling each other out.
Held: If the true nature . .

Cited by:

Cited – Barclays Mercantile Business Finance Ltd v Mawson (HM Inspector of Taxes) HL 25-Nov-2004
The company had paid substantial sums out in establishing a gas pipeline, and claimed those sums against its tax as capital allowances. The transaction involved a sale and leaseback arrangement which the special commissioners had found to be a . .
Cited – Commissioners of Inland Revenue v McGuckian HL 21-May-1997
Steps which had been inserted into a commercial transaction, but which had no purpose other than the saving of tax are to be disregarded when assessing the tax effect of the scheme. The modern approach to statutory construction is to have regard to . .
Cited – Norglen Ltd (In Liquidation) v Reeds Rains Prudential Ltd and Others; Circuit Systems Ltd (In Liquidation) and Another v Zuken-Redac HL 1-Dec-1997
An assignment of a cause of action by a company in liquidation was valid, even though the dominant purpose was to avoid having to give security for costs, and to get legal aid. In dismissing the argument that the transactions were a device to defeat . .
Cited – Shimizu (UK) Ltd v Westminster City Council HL 11-Feb-1997
The removal of a listed building’s chimney stacks was an alteration allowing a claim for compensation. The phrases ‘alteration’ and ‘demolition’ are mutually exclusive. Although part of a building may be a listed building, a part of a listed . .
Cited – Belvedere Court Management Ltd v Frogmore Developments Ltd CA 24-Oct-1995
Landlords had sold flats to Frogmore without serving a section 5 notice under the 1987 Act. Prior to receipt of a purchase notice, Frogmore granted certain leases in the block of flats to another party.
Held: The agreements were upheld, and . .
Cited – UBS Ag and Another v Revenue and Customs SC 9-Mar-2016
UBS AG devised an employee bonus scheme to take advantage of the provisions of Chapter 2 of the 2003 Act, with the sole purpose other than tax avoidance, and such consequential advantages as would flow from tax avoidance. Several pre-ordained steps . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 27 June 2022; Ref: scu.220502

Werner, Regina (on the Application of) v Commissioners of Inland Revenue and others: CA 12 Jul 2002

Application for permission to appeal against an order refusing the claimant permission to apply for judicial review of a notice given to him by an inspector of taxes pursuant to s.20(1) of the Taxes Management Act 1970. The application before Newman J was a renewed application, the application having been refused on the papers by Silber J when he observed:
‘The Commissioners were entitled to pursue the information sought under Section 20(1) of the Taxes Management Act 1970 as they had information which enabled them to be satisfied that the requisite statutory thresholds had been met. There are no arguable public law grounds for impugning any of the decisions sought to be challenged.’

Citations:

[2002] EWCA Civ 979, [2002] STC 1213

Links:

Bailii

Statutes:

Taxes Management Act 197020(1)

Jurisdiction:

England and Wales

Taxes Management

Updated: 27 June 2022; Ref: scu.175183

Slater Ltd and others v Beacontree Commissioners for the General Purposes of Income Tax: CA 20 Feb 2002

Application for leave to appal against penalties imposed for failing to complay with notices requiring the production of documents to the Commissioners.

Judges:

Robert Walker LJ

Citations:

[2002] EWCA Civ 259

Links:

Bailii

Jurisdiction:

England and Wales

Corporation Tax, Taxes Management

Updated: 23 June 2022; Ref: scu.216855

Elite Elevators Ltd v Revenue and Customs: FTTTx 19 Dec 2013

FTTTx Penalty – seven late payments of PAYE and NICs – FA 2009 Schedule 56 – whether any special circumstances existed to justify a reduction in the penalty amount – no – whether the penalty was disproportionate – no – whether a reasonable excuse for late payment – yes for two defaults – Appeal allowed in part

Citations:

[2014] UKFTT 25 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 23 June 2022; Ref: scu.519558

Ballards Removals Ltd v Revenue and Customs: FTTTx 19 Dec 2013

FTTTx Penalty – late payment of PAYE and NICs – FA 2009, Schedule 56 – whether insufficiency of funds reasonable excuse – no – whether lack of specific warning a reasonable excuse – no – whether the penalty was disproportionate – no – whether a reasonable excuse for late payment – no -Appeal dismissed

Citations:

[2014] UKFTT 23 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 23 June 2022; Ref: scu.519551

Spa Vinal v Spa Orbat: ECJ 14 Jan 1981

ECJ 1. In its present stage of development community law does not restrict the freedom of each member state to lay down tax arrangements which differentiate between certain products on the basis of objective criteria, such as the nature of the raw materials used or the production processes employed. Such differentiation is compatible with community law if it pursues objectives of economic policy which are themselves compatible with the requirements of the treaty and its secondary law and if the detailed rules are such as to avoid any form of discrimination, direct or indirect in regard to imports from other member states or any form of protection of competing domestic products.
2. Tax arrangements which impose heavier charges on denatured synthetic alcohol than on denatured alcohol obtained by fermentation on the basis of the raw materials and the manufacturing processes employed for the two products are not at variance with the first paragraph of article 95 of the eec treaty if they are applied identically to the two categories of alcohol originating in other member states.
Such tax arrangements are justified even though the products in question, whilst derived from different raw materials, are capable of being put to the same uses and have the same practical application.

Where by reason of the taxation of synthetic alcohol, it has been impossible to develop profitable production of that type of alcohol on national territory, the application of such tax arrangements cannot be considered as constituting indirect protection of national production of alcohol obtained by fermentation within the meaning of the second paragraph of article 95 of the eec treaty on the sole ground that their consequence is that the product subject to the heavier taxation is in fact a product which is exclusively imported from other member states of the community.

Citations:

R-46/80, [1981] EUECJ R-46/80, C-46/80

Links:

Bailii

European, Taxes Management, Constitutional

Updated: 21 June 2022; Ref: scu.214964

Slater Ltd and Others v Beacontree General Commissioners and Another: ChD 6 Dec 2001

When the general commissioners were investigating an appeal against the imposition of penalties, it was open to them to ask the company to present more detailed accounts than would be provided under the rules which allowed smaller companies to file short accounts. It was not enough to offer access to the companies books. The commissioners were entitled to require a profit and loss account in one of the four statutory formats. The defaults in this case were deliberate, and inexcusable, and the penalties should be sufficiently substantial to mean something. The penalties here were modest and the companies could make no legitimate complaint of them.

Judges:

Justice Lightman

Citations:

Times 18-Dec-2001, Gazette 06-Feb-2002

Statutes:

Companies Act 1985 248, General Commissioners (Jurisdiction and Procedure) Regulations 1994 (1994 No 1812) 10(3)

Jurisdiction:

England and Wales

Taxes Management, Company, Corporation Tax

Updated: 21 June 2022; Ref: scu.167112

Pledger v Revenue and Customs: FTTTx 22 Jul 2010

FTTTx Application to strike out notice of appeal – application for permission to appeal out of time – numerous disputed decisions – some unappealable, all apparently appealed out of time – some decisions before and some after 1 April 2009 changes in appeal procedures – factors to be taken into account in exercising Tribunal’s discretion to admit notice of appeal out of time – application partly successful.

Citations:

[2010] UKFTT 342 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 18 June 2022; Ref: scu.422332

Crabtree v Hinchcliffe (Inspector of Taxes): HL 27 Oct 1971

HL Capital gains tax – Market value at 6th April 1965 – Quoted shares – Takeover negotiations in progress – Negotiations not known to public – Whether in consequence of special circumstances quoted price not proper measure of market value – Finance Act 1965 (c. 25), s. 44.

Citations:

[1971] UKHL TC – 47 – 419

Links:

Bailii

Statutes:

Finance Act 1965 44

Jurisdiction:

England and Wales

Capital Gains Tax

Updated: 17 June 2022; Ref: scu.559817

Inland Revenue Commissioners v Laird Group Plc: ChD 13 Mar 2001

It was difficult to reconcile different decisions of the higher courts. Nevertheless, the declaration and payment of a dividend which did not involve any transaction in securities, or alteration of rights attaching to securities, was not itself a dealing in securities. The arrangement involved the declaration of abnormally large dividends in purchasing another company so as to create franked income which it could then set off against its own liability to tax at tax rates applicable to its group. If a payment operated to extinguish a security, it might become such a transaction, but in this case it had not.

Citations:

Times 13-Mar-2001, Gazette 20-Apr-2001

Statutes:

Income and Corporation Taxes Act 1988 706

Jurisdiction:

England and Wales

Taxes Management, Corporation Tax

Updated: 17 June 2022; Ref: scu.82347

Inland Revenue Commissioners v Oce Van Der Bgrinton Nv: ChD 21 Nov 2000

The question of how to balance double taxation provisions when considering deduction of tax at source under such an agreement with a member from dividends paid by a UK company to its Dutch parent is one to be settled by the European court. This was a question of whether this constituted a ‘withholding tax’ forbidden by the Directive.

Citations:

Times 21-Nov-2000

Statutes:

UK/Netherlands Double Taxation Agreement

Jurisdiction:

England and Wales

European, Taxes Management

Updated: 17 June 2022; Ref: scu.82354

Inland Revenue Commissioners v Amerada Hess Ltd: ChD 20 Mar 2001

An oil exploration company was able to set off against the charge to Petroleum Revenue Tax on its profits from the exploitation of an oilfield, the cost of abortive explorations outside the field but less than five kilometers away. The transitional provisions following the abandonment of the tax on new oilfields did not affect this issue.

Citations:

Times 20-Mar-2001

Statutes:

Oil Taxation Act 1975

Jurisdiction:

England and Wales

Taxes Management

Updated: 17 June 2022; Ref: scu.82339

Beadle v Revenue and Customs: UTTC 1 Apr 2019

Partner Payment Notices – penalty for late payment – jurisdiction of FTT on appeal against penalty notice to entertain challenge to PPN – whether reasonable excuse – whether special circumstances – whether penalty notices invalid due to incorrect statement of date on which PPN due or due to failure to identify issuing officer – applicability of section 114(1) Taxes Management Act 1970.

Citations:

[2019] UKUT 101 (TCC)

Links:

Bailii

Statutes:

Taxes Management Act 1970 114(1)

Jurisdiction:

England and Wales

Taxes Management

Updated: 14 June 2022; Ref: scu.635229

Eynsham Cricket Club v Revenue and Customs: UTTC 18 Feb 2019

PROCEDURE – whether parties should be permitted to pursue new arguments on appeal in respect of an issue where HMRC conceded FTT’s conclusions gave rise to an error of law – no – neither party permitted to pursue new arguments – effect of that conclusion on the determination of the relevant ground of appeal in the Upper Tribunal

Citations:

[2019] UKUT 47 (TCC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 14 June 2022; Ref: scu.635221

Pierhead Drinks Ltd v Revenue and Customs: UTTC 23 Jan 2019

PROCEDURE – right of third party to appeal – procedural fairness – whether FTT should have given notice to appellant’s director of intention to find director not a fit and proper person to hold WOWGR – whether FTT required to give notice – whether cross-examination sufficient notice – the FTT’s decision should not be remade or amended – appeal dismissed.

Citations:

[2019] UKUT 7 (TCC)

Links:

Bailii

Statutes:

Warehousekeepers and Owners of Warehoused Goods Regulations 1999

Jurisdiction:

England and Wales

Taxes Management, Customs and Excise

Updated: 14 June 2022; Ref: scu.635217

Allpay Ltd v Revenue and Customs (Procedure : Other): FTTTx 21 May 2018

Whether HMRC required to plead an issue the burden of proof resting on appellant – yes – whether HMRC had pleaded the issue – no – whether HMRC should be permitted to amend statement of case – no, as amendment unparticularised

Citations:

[2018] UKFTT 273 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 13 June 2022; Ref: scu.619280

Tummy Gym / Gymophobics Hucknall Ltd v Revenue and Customs: FTTTx 24 Feb 2014

Section 98A(2) and (3) Taxes Management Act 1970 – Employer’s End of Year P35 return filed late – company had ceased trading – post-cessation filing delegated to agent – whether reasonable excuse – no – appeal dismissed

Citations:

[2014] UKFTT 238 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 11 June 2022; Ref: scu.525238

Akinlade v Revenue and Customs: FTTTx 19 Mar 2014

Application to appeal out of time – if out of time application granted then application to re-categorise the appeal – were the assessments sent to an incorrect address – appellant delayed in dealing with matters even after he must have been aware of them – application refused

Citations:

[2014] UKFTT 291 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 11 June 2022; Ref: scu.525243

The Mothers Union v Revenue and Customs: FTTTx 19 Mar 2014

Employer’s PAYE deductions – electronic coding notifications – whether employer’s consent to electronic communications given – whether notice of coding delivered to employer electronically – regulations 196 and 213 of PAYE Regulations 2003 – appeal dismissed

Citations:

[2014] UKFTT 275 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 11 June 2022; Ref: scu.525284

Turner v Revenue and Customs: FTTTx 8 Sep 2010

Construction Industry Scheme – Penalties for late submissions of returns (Taxes Management Act 1970 s.98A) – Whether partner of Appellant firm had a ‘reasonable excuse’ (Taxes Management Act 1970 s.118) – Appeal allowed in part

Citations:

[2010] UKFTT 483 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 11 June 2022; Ref: scu.426598

In re Sutherland, dec’d; Winter v Inland Revenue Commissioners: HL 1963

The concept of a contingent liability was considered.
Held: In Scots law, a contingent liability is a liability which, by reason of something done by the person bound, may or may not arise depending on the happening of a future event.
Lord Guest said: ‘The purpose of section 7(5) . . is to value the property. ‘It does not’ as Lord Evershed said ‘require you to assume that the sale . . has occurred.’ It simply prescribes, as the criterion for value, price in the open market as between a willing seller and a willing buyer, which is a familiar basis for valuation.’
He set out the test for a contingent liability as follows: ‘Contingent liabilities must . . be something different from future liabilities which are binding on the company, but are not payable until a future date. I should define a contingency as an event which may or may not occur and a contingent liability as a liability which depends for its existence upon an event which may or may not happen.’
A contingent obligation must be distinguished from a mere spes obligationis, or the hope or expectancy of an obligation yet to emerge. Lord Reid said: ‘. . if I see a watch in a shop window and think of buying it, I am not under a contingent liability to pay the price: similarly, if an Act says I must pay tax if I trade and make a profit, I am not before I begin trading under a contingent liability to pay tax in the event of my starting trading. In neither case have I committed myself to anything. But if I agree by contract to accept allowances on the footing that I will pay a sum if I later sell something above a certain price I have committed myself and I come under a contingent liability to pay in that event.’

Judges:

Lord Guest, Lord Reid

Citations:

[1963] AC 235

Jurisdiction:

Scotland

Cited by:

Cited – Grays Timber Products Ltd v Revenue and Customs SC 3-Feb-2010
An assessment to income tax had been raised after the employee resold shares in the company issued through the employees’ share scheme at a price which the Revenue said was above the share value. The company appealed against a finding that tax was . .
Helpful – In re SBA Properties Ltd ChD 1967
A court action had been raised in the name of a company without authority, giving rise to a possible liability in expenses to the defendants. One of the defendants claimed that, in the event that the company’s liquidator ratified the action, that . .
Applied – In re T and N Ltd and Others (No 3) ChD 16-Jun-2006
The court considered the application of ‘the bankruptcy template of section 382 to the rules governing the winding up of companies’.
Held: The phrase ‘obligation incurred’ in Rule 13.2(1)(b) was inapt to describe a common law duty of care in . .
Cited – In re Nortel Companies and Others SC 24-Jul-2013
The court was asked as to the interrelationship of the statutory schemes relating to the protection of employees’ pensions and to corporate insolvency.
Held: Liabilities which arose from financial support directions or contribution notices . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 11 June 2022; Ref: scu.396610

Inland Revenue Commissioners v Bullock: CA 1976

The court was asked to decide whether the taxpayer’s house was his principal home. Buckley LJ discussed the nature of ‘residence’: ‘A man may have homes in more than one country at one time. In such a case, for the purpose of determining his domicile, a further enquiry may have to be made to decide which, if any, should be regarded as his principal home.’ and ‘I do not think that it is necessary to show that the intention to make a home in the new country is irrevocable or that the person whose intention is under consideration believes that for reasons of health or otherwise he will have no opportunity to change his mind. In my judgment, the true test is whether he intends to make his home in the new country until the end of his days unless and until something happens to make him change his mind.’

Judges:

Buckley LJ

Citations:

[1976] STC 409, [1976] 1 WLR 1178

Jurisdiction:

England and Wales

Cited by:

Cited – Morgan As Attorney of Sir Peter Shaffer v Cilento, Shaffer, Shaffer, Shaffer, and Minutolo ChD 9-Feb-2004
The deceased, a playwright had moved to Australia in his last years, though he returned to and died in London. The claimants sought provision from his estate, but it was argued that he had changed domicile to Australia, and that the 1975 Act did not . .
Cited – Agulian and Another v Cyganik CA 24-Feb-2006
The question was whether the deceased had lost his domicile of birth and acquired one of choice when living and working in the UK for 43 years. He had retained land in Cyprus, but lived here.
Held: He had retained his domicile of birth: . .
Cited – Gaines-Cooper v HM Revenue and Customs ChD 13-Nov-2007
The parties disputed the domicile of the tax-payer. He had a domicile of origin in the UK, but asserted that he had acquired a domicile of choice in the Seychelles. The Special Commissioners had allowed, in assessing the domicile at any time, of . .
Cited – Barlow Clowes International Ltd and Others v Henwood CA 23-May-2008
The receiver appealed against an order finding that the debtor petitioner was not domiciled here when the order was made. The debtor had a domicile of origin in England, but later acquired on in the Isle of Man. He then acquired a home in Mauritius . .
Cited – Holliday and Another v Musa and Others CA 30-Mar-2010
The adult children of the deceased appealed against a finding that their father had died domiciled in the UK, and allowing an application under the 1975 Act. He had a domicile of origin in Cyprus but had lived in England since 1958. . .
Lists of cited by and citing cases may be incomplete.

Income Tax, Family, Taxes Management

Updated: 11 June 2022; Ref: scu.261301

Inland Revenue Commissioners v Luke: HL 1963

The House applied the literal approach to statutory interpretation. However there may be cases where ‘to achieve the obvious intention and produce a reasonable result [the court] must do some violence to the words.’
Lord Reid said: ‘How, then, are we to resolve the difficulty? To apply the words literally is to defeat the obvious intention of the legislation and to produce a wholly unreasonable result. To achieve the obvious intention and produce a reasonable result we must do some violence to the words. This is not a new problem, though our standard of drafting is such that it rarely emerges. The general principle is well settled. It is only where the words are absolutely incapable of a construction which will accord with the apparent intention of the provision and will avoid a wholly unreasonable result, that the words of the enactment must prevail.’

Judges:

Lord Reid

Citations:

1963 SC (HL) 65, [1963] AC 557

Jurisdiction:

Scotland

Cited by:

Cited – Harding v Revenue and Customs CA 23-Oct-2008
Lapsed Currency conversion option lost status
The taxpayer appealed his assessment to Capital Gains Tax on his redemption of loan notes arising following the sale of his computer company. He said that they were qualifying corporate bonds. The question was whether a security in which a currency . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 11 June 2022; Ref: scu.200611

Argosy Co v Inland Revenue Commissioners: PC 8 Feb 1971

(Guyana) The word ‘best’ when used to refer to the judgment of a tax officer making an assessment of tax due, rather than implying a higher than normal standard, is a recognition that the result may necessarily involve an element of guesswork. It means simply ‘to the best of (their) judgment on the information available’

Judges:

Lord Donovan

Citations:

[1971] 1 WLR 514, [1971] UKPC 5, [1971] TR 29

Links:

Bailii

Jurisdiction:

Commonwealth

Cited by:

Cited – Pegasus Birds Ltd v Commissioners of HM Customs and Excise CA 27-Jul-2004
The taxpayer complained that the assessment imposed by the Commissioners was wholly unreasonable, and void. The tribunal had found the assessment wholly unreasonable, but the High Court had allowed the Commissioners’ appeal.
Held: There was no . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 11 June 2022; Ref: scu.200234

Loss Relief Group, Test Claimants In v Inland Revenue: CA 28 May 2004

The taxpayers sought determination by the court of their various claims for group tax relief. The High Court had declined jurisdiction.
Held: The appeal was allowed. The judge’s attitude was one which would perhaps appeal to most lawyers experienced in tax matters if Community law considerations could be left out of account, but Community law obliges the High Court to entertain the claims. If a remedy was available through the commissioners, statute required the taxpayer to take their case before the commissioners.

Judges:

Lord Justice Peter Gibson Lord Justice Longmore

Citations:

[2003] EWCA Civ 680, [2005] 1 WLR 52

Links:

Bailii

Statutes:

Taxes Management Act 1970 30A

Jurisdiction:

England and Wales

Citing:

Appeal from – Claimants under the Loss Relief Group Litigation Order v Inland Revenue Commissioners ChD 3-Mar-2004
Various claimants sought to have issues of law on group relief and other issues settled under a group litigation order.
Held: The High Court had no jurisdiction to hear such matters until they had first been raised in ordinary tax appeals . .
Appeal from – NEC Semi-Conductors Limited and Other Test Claimants v The Commissioners of Inland Revenue ChD 24-Nov-2003
UK companies were subsidiaries of companies resident abroad, and complained that they were unable to make group income elections.
Held: The prohibition infringed non-discrimination provisions of double taxation agreements – non-discrimination . .

Cited by:

Appeal from – Autologic Holdings Plc and others v Commissioners of Inland Revenue HL 28-Jul-2005
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by . .
Lists of cited by and citing cases may be incomplete.

Corporation Tax, Taxes Management

Updated: 11 June 2022; Ref: scu.197933

Forthright (Wales) Limited v A L Davies (HM Inspector of Taxes): ChD 18 Mar 2004

The inspector disallowed a claim for enterprise investment relief, saying that not all the funds raised were to be used for a qualifying purpose.
Held: The proceeds of a share issue had been used in part to pay a dividend. The issue did not qualify. The inspector’s refusal yto authorise exemption was a decision refusing the claim, and gave rise to the same right sof appeal as a decision.

Judges:

The Hon Mr Justice Lightman

Citations:

[2004] EWHC 524 (Ch), Times 01-Apr-2004

Links:

Bailii

Statutes:

Taxes Management Act 1970 1A, Incom,e and Corporation Taxes Act 1988 306

Jurisdiction:

England and Wales

Citing:

Cited – Strong and Co of Romsey Ltd v Woodifield HL 30-Jul-1906
The company sought to deduct from its trading profits a sum expended paying damages for personal injuries to a visitor to the taxpayer’s Inn. The claim had been rejected.
Held: The company’s appeal failed. Lord Davey said: ‘I think that the . .
Appeal From – Forthright (Wales) Ltd v Hm Inspector of Taxes SCIT 29-Sep-2003
. .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Corporation Tax

Updated: 10 June 2022; Ref: scu.194573

Langham (HM Inspector of Taxes) v Veltema: CA 26 Feb 2004

The tax inspector had sought to re-open a tax assessment outside the time limit provided. He had discovered that a house had been given to the tax payer by his employers. The taxpayer said this had been discoverable from his self-assessment tax return. The inspector had been aware of the possible deficiency for more than 12 months, but had taken no action, and was now out of time. The inspector appealed against refusal of permission by the High Court after a similar refusal by the General Commissioners.
Held: The purpose of the self-assessment scheme was to simplify and speed matters up, and worked on the assumption of honesty in the tax-payer. The tax payer had miscalculated, but without fraud or negligence. Nevertheless the inspector should be shut out from a re-opening only when he had received a clear indication of error and did nothing.
‘[T]he key to the scheme is that the Inspector is to be shut out from making a discovery assessment under the section only when the taxpayer or his representatives, in making an honest and accurate return or in responding to a section 9A enquiry, have clearly alerted him to the insufficiency of the assessment, not where the Inspector may have some other information, not normally part of his checks, that may put the sufficiency of the assessment in question. If that other information when seen by the Inspector does cause him to question the assessment, he has the option of making a section 9A enquiry before the discovery provisions of section 29(5) come into play. ‘[A]pplying the proper statutory test, there was no basis upon which they could have found that the Inspector ought reasonably to have been aware, in the terms provided by section 29(5), of the insufficiency of the assessment on the basis of the information contained in Mr. Veltema’s tax return ‘ and the tax inspector’s appeal was allowed. Leave was given to appeal to the House of Lords.

Judges:

Lord Justice Auld, Lord Justice Chadwick and Lady Justice Arden

Citations:

[2004] EWCA Civ 193, Times 11-Mar-2004, [2004] STC 544

Links:

Bailii

Statutes:

Taxes Management Act 1970 29

Jurisdiction:

England and Wales

Citing:

Appeal from – HM Inspector of Taxes v Veltema ChD 10-Dec-2002
The inspector appealed a finding that he was unable to challenge a self-assessment after the normal time limit.
Held: The Act allowed an exemption on the basis that the inspector ‘could not have been reasonably expected on the basis of the . .
Cited – Scorer v Olin Energy Systems Ltd HL 1985
Where an appeal against an assessment to tax had been settled by agreement, any dispute as to the scope of that agreement was to be viewed objectively, having regard to the surrounding circumstances, including all the material known to be in the . .
Cited – Cenlon Finance Co Ltd v Ellwood 1961
The inspector may use discovery procedures after a tax assessment has been settled where it newly appears that the taxpayer has been undercharged. The discovery allowed is to be given a wide meaning. . .

Cited by:

Cited – HM Revenue and Customs v Cotter CA 8-Feb-2012
Mr Cotter’s accountants had submitted a second tax return adding claims to loss relief in the following year. The claims were contentious, but he invited a review by the Revenue asserting that the losses wiped out any liability to tax. The Revenue . .
Lists of cited by and citing cases may be incomplete.

Income Tax, Taxes Management

Updated: 10 June 2022; Ref: scu.194131

Browallia Cal Ltd, Regina (on the Application Of) v General Commissioners of Income Tax: Admn 4 Nov 2003

The taxpayer sought to appeal to the tax commissioners against the decision of the inspector that they had no reasonable excuse for not appealing a loss determination within the thirty days allowed. The commissioners held that their discretion was no wider than that of the inspector.
Held: The commissioners were in error. On hearing such an appeal they should act in such an unrestricted way as was necessary to take account of the interests of justice. The existence or absence of a reasonable excuse was not determinative.

Judges:

Evans-Lombe J

Citations:

[2003] EWHC 2779 (Admin), Times 12-Nov-2003

Links:

Bailii

Statutes:

Taxes Management Act 1970 49

Taxes Management

Updated: 08 June 2022; Ref: scu.188504

BMBF (No 24) Limited v the Commissioners of Inland Revenue: CA 6 Nov 2003

The taxpayer, a non-resident, operated a sale and lease back scheme of machinery to be used in its business within the UK. There had been a chain of leases.
Held: The court had first to identify the ‘relevant lease’. It was the head lease which was the lease of the machinery on which the expemse was reclaimed. In falling foul of section 52, it operated to disallow attraction to the capital allowance claimed.

Judges:

Lord Justice Chadwick Lord Justice Rix Lord Justice Simon Brown

Citations:

[2003] EWCA Civ 1560, Times 27-Nov-2003

Links:

Bailii

Statutes:

Capital Allowances Act 1990 42(3)(a), Taxes Management Act 1970 56A

Jurisdiction:

England and Wales

Citing:

Appeal from – BMBF (No 24) Ltd v Inland Revenue Commissioners ChD 26-Nov-2002
Equipment in Illinois was transferred to a UK company within the same group, then sold and leased back in order to take advantage of capital allowances. The Act provided for a reduction in the allowance where machinery was let to a foreign company, . .
Awaiting Appeal – Barclays Mercantile Business Finance Ltd v Mawson (Inspector of Taxes) ChD 22-Jul-2002
The taxpayer sought to claim for capital allowances of andpound;91 million for gas pipelines. The claimant had provided the equipment through a leasing scheme.
Held: The leases were unusual, but did not appear to be merely part of a tax . .
Cited – W T Ramsay Ltd v Inland Revenue Commissioners HL 12-Mar-1981
The taxpayers used schemes to create allowable losses, and now appealed assessment to tax. The schemes involved a series of transactions none of which were a sham, but which had the effect of cancelling each other out.
Held: If the true nature . .
Cited – MacNiven (Inspector of Taxes) v Westmoreland Investments Ltd HL 15-Feb-2001
The fact that a payment of interest was made only to create a tax advantage did not prevent its being properly claimed. Interest was paid for the purposes of setting it against tax, when the debt was discharged. A company with substantial losses had . .

Cited by:

Appealed to – BMBF (No 24) Ltd v Inland Revenue Commissioners ChD 26-Nov-2002
Equipment in Illinois was transferred to a UK company within the same group, then sold and leased back in order to take advantage of capital allowances. The Act provided for a reduction in the allowance where machinery was let to a foreign company, . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Corporation Tax

Updated: 08 June 2022; Ref: scu.187539

Allen v United Kingdom: ECHR 10 Sep 2002

The court rejected as inadmissible an application challenging admissibility of evidence obtained from him by the Revenue either by compulsion or inducement.
Held: ‘The Court notes that in this case the applicant does not complain that the information about his assets which he gave the Inland Revenue was used against him in the sense that it incriminated him in the commission of an offence due to acts or omissions in which he had been involved prior to that moment. His situation may therefore be distinguished from that of the applicant in Saunders . . The applicant was charged with and convicted of the offence of making a false declaration of his assets to the Inland Revenue. In other words, he lied, or perjured himself through giving inaccurate information about his assets. This was not an example of forced self-incrimination about an offence which he had previously committed; it was the offence itself. It may be that the applicant lied in order to prevent the Inland Revenue uncovering conduct which might possibly be criminal and lead to a prosecution. However, the privilege against self-incrimination cannot be interpreted as giving a general immunity to actions motivated by the desire to evade investigation by the revenue authorities.’ The court noted small penalties for refusing a declaration and the two years imprisonment for refusing to answer questions in Saunders and added: ‘Nor does the Court consider that any improper inducement was brought to bear through the use of the so-called ‘Hansard Warning’ which informed the applicant of the practice of the Inland Revenue of taking into account the co-operation of the taxpayer in deciding whether to bring any prosecution for fraud. There is no indication that the applicant was misled as to the effect of the warning, accepting that it could not be interpreted as any kind of guarantee of freedom from prosecution. Consequently, the Court does not find that the facts of this case disclose any infringement of the right to silence or privilege against self-incrimination or that there has been any unfairness contrary to Article 6 ss 1 of the Convention.’

Citations:

76574/01, [2002] ECHR 858

Links:

Bailii

Jurisdiction:

Human Rights

Cited by:

Cited – Regina v Sewa Singh Gill and Paramjit Singh Gill CACD 31-Jul-2003
The appellants sought to challenge their convictions for cheating the Inland Revenue. They were accused of having hidden assets and income from the revenue. The appellants objected to the use at trial of material obtained in a ‘Hansard’ interview. . .
Lists of cited by and citing cases may be incomplete.

Human Rights, Taxes Management

Updated: 07 June 2022; Ref: scu.185070

Regina on the Application of Wilkinson v The Commissioners of Inland Revenue: CA 18 Jun 2003

The claimant had not received the same tax allowance following his wife’s death as would have been received by a woman surviving her husband. That law had been declared incompatible with Human Rtights law as discriminatory, but the respondent refused to make good any claim which had not been originally pursued to the European Court, since there was no obligation, the case having been a friendly settlement not creating an obligation, and saying that primary legislation (s262) required them not to make a payment. One of the primary tasks of the Commissioners is to recover those taxes which Parliament has decreed shall be paid. Section 1 of the 1970 Act permits them to do this pragmatically with regard to principles of good management. Concessions can be made where those will facilitate the overall task of tax collection. Nevertheless Parliament did not intend the benefit to be available to men, and it was outside the scope of a concession to allow it. A declaration of incompatibility was made.

Judges:

Lord Justice Mantell Lord Justice Rix Lord Phillips Of Worth Matravers, Mr

Citations:

[2003] EWCA Civ 814, Times 28-Jun-2003, 2002/0648, Gazette 04-Sep-2003, [2003] 1 WLR 2683

Links:

Bailii

Statutes:

Human Rights Act 1998 4, Income and Corporation Taxes Act 1988 262, Taxes Management Act 1970 1(1)

Jurisdiction:

England and Wales

Citing:

Appeal from – Wilkinson v Commissioners of Inland Revenue Admn 14-Feb-2002
The case concerned the differential tax treatment between men and women, which granted to widows a tax allowance that was not granted to widowers.
Held: The court made a ‘declaration of incompatibility’ pursuant to section 4. 1(1) of the TMA . .
Cited – Abdulaziz etc v The United Kingdom ECHR 28-May-1985
Three women, all lawfully settled in the UK, had married third-country nationals but, at first, the Secretary of State had refused permission for their husbands to remain with them, or join them, in the UK.
Held: The refusals of permission had . .
Cited – Fielding v The United Kingdom ECHR 29-Jan-2002
Hudoc Judgment (Struck out of the list) Struck out of the list (friendly settlement)
The claimant’s wife had died. He sought the benefits, including tax allowances, which would have been paid to him had he . .
Cited – Bates v Inland Revenue Commissioners HL 1968
Section 402, on its plain meaning, produced results in some cases which were ‘monstrous’ and which Parliament can never have intended. The Commissioners had not sought to amend the legislation, but realising the monstrous result of giving effect to . .
Cited – Vestey v Inland Revenue Commissioners (No 2) ChD 1979
The Commissioners of Inland Revenue do not have, any more than does any other emanation of the Crown, any power to suspend or dispense with laws. ‘It is at this point that there arises what Mr Potter, for the taxpayers, has denominated as a serious . .
Cited – Vestey v Inland Revenue Commissioners ChD 1979
The case concerned section 478, which had monstrous and unintended results, if applied in accordance with its natural meaning. The Commissioners did not seek to apply the section in a manner which produced such results. The court held: ‘One should . .
Cited – Absolom v Talbot 1943
Scott LJ said: ‘No judicial countenance can or ought to be given in matters of taxation to any system of extra-legal concessions.’ . .
Cited – Regina v Inland Revenue Commissioners, ex parte the National Federation of Self-Employed and Small Businesses Ltd HL 9-Apr-1981
Limitations on HMRC discretion on investigation
The Commissioners had been concerned at tax evasion of up to 1 million pounds a year by casual workers employed in Fleet Street. They agreed with the employers and unions to collect tax in the future, but that they would not pursue those who had . .
Cited – British Sky Broadcasting Group Plc v Commissioners of Customs and Excise Admn 23-Feb-2001
The Commissioners are under a common law duty to treat taxpayers fairly, and not to discriminate without justification between taxpayers. . .
Cited – Regina v Commissioners of Inland Revenue, ex parte Unilever plc CA 1996
The Revenue had refused to exercise a discretion in favour of the taxpayer in the same form it had granted for over twenty years. The taxpayer complained that this was unfair.
Held: The new approach to late applications, brought in without any . .

Cited by:

Appeal from – Wilkinson, Regina (on the Application Of) v Inland Revenue HL 5-May-2005
The claimant said that the widows’ bereavement tax allowance available to a wife surviving her husband should be available to a man also if it was not to be discriminatory.
Held: Similar claims had been taken before the Human Rights Act to the . .
Lists of cited by and citing cases may be incomplete.

Income Tax, Discrimination, Taxes Management, Human Rights

Updated: 07 June 2022; Ref: scu.183699

Inland Revenue Commissioners v Parker: HL 1966

A company capitalised a sum standing to the credit of its profit and loss account and applied it in issuing redeemable debentures to its members in proportion to the amounts paid up on their shares. The company subsequently redeemed the debentures at par. The difficulty arose because the debentures were issued in 1953, long before the enactment of the Finance Act 1960, while notice of redemption was not given until 1961.
Held: The Finance Act was not retrospective. The question was whether the redemption and cancellation of the debentures by themselves constituted transactions in securities. The House unanimously held that they did.

Citations:

[1966] AC 141, 43 Tax Cas 396, [1966] UKHL TC – 43 – 396, [1966] 1 All ER 399, [1966] 2 WLR 486

Links:

Bailii

Statutes:

Finance Act 1960

Cited by:

Cited – Inland Revenue Commissioners v Laird Group plc CA 30-Apr-2002
The taxpayer had sources of foreign income. Arrangements were made to take the benefit through the payment of interim dividends, which it intended to use to set off against liability for advance corporation tax. The Commissioner contended that these . .
Cited – Her Majesty’s Commissioners of Inland Revenue v Laird Group plc HL 16-Oct-2003
Was the payment of a dividend in respect of shares ‘a transaction in securities’ or ‘a transaction relating to securities’ within the meaning of section 703.
Held: ‘As a matter of ordinary language, the creation, issue, sale, purchase, . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 07 June 2022; Ref: scu.182901

Simon Tubb Painter and Decorator Ltd v Revenue and Customs: FTTTx 30 Sep 2013

FTTTx PAYE – late submission of Employer’s Annual Return – whether scale of penalty is reasonable – Decision of Upper Tribunal in Hok Ltd applies. Whether reasonable excuse for late submission of return – No.

Citations:

[2013] UKFTT 540 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 07 June 2022; Ref: scu.516882

Wilkinson v Commissioners of Inland Revenue: Admn 14 Feb 2002

The case concerned the differential tax treatment between men and women, which granted to widows a tax allowance that was not granted to widowers.
Held: The court made a ‘declaration of incompatibility’ pursuant to section 4. 1(1) of the TMA gives to the Commissioners a wide statutory power to grant concessions to taxpayers which derogate from their obligations to pay tax in accordance with the letter of the applicable tax legislation

Judges:

Moses J

Citations:

[2002] EWHC 182 (Admin), [2002] STC 347

Links:

Bailii

Statutes:

Human Rights Act 1998 4, Income and Corporation Taxes Act 1988 262, Taxes Management Act 1970 1(1)

Jurisdiction:

England and Wales

Cited by:

Appeal from – Regina on the Application of Wilkinson v The Commissioners of Inland Revenue CA 18-Jun-2003
The claimant had not received the same tax allowance following his wife’s death as would have been received by a woman surviving her husband. That law had been declared incompatible with Human Rtights law as discriminatory, but the respondent . .
Cited – Hooper and Others, Regina (on the Application of) v Secretary of State for Work and Pensions HL 5-May-2005
Widowers claimed that, in denying them benefits which would have been payable to widows, the Secretary of State had acted incompatibly with their rights under article 14 read with article 1 of Protocol 1 and article 8 of the ECHR.
Held: The . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Discrimination, Human Rights

Updated: 05 June 2022; Ref: scu.168032

Hawksbridge Llp v Revenue and Customs: FTTTx 7 May 2014

FTTTx INCOME TAX – loss relief – arrangements for exploitation of intellectual property rights – whether first-year losses incurred – whether large part of money used for exploitation of rights or for purchase of guaranteed income stream – guaranteed income stream – whether remainder used within first accounting period and allowable loss in that year – whether capital or income payments – Icebreaker 1 considered – arrangements essentially a tax avoidance scheme – appeals against closure notices substantially dismissed
REFERENCE – TMA s 28ZA – whether partnerships’ trade commercial – no – whether members non-active – yes – whether Restrictions Regulations apply – no, as none of conditions satisfied – whether ITA s 74ZA applies to later iteration – yes

Judges:

Bishopp TJ

Citations:

[2014] UKFTT 416 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management, Income Tax

Updated: 05 June 2022; Ref: scu.525400

Regina v Dimsey: HL 11 Oct 2001

The defendant provided financial services, including the provision of offshore companies for a co-defendant. They were used to secrete assets abroad. Misleading information was provided to the revenue by the applicant and others. They were charged with conspiracy. Only one charge remained effective, but it was argued that since, under s 739(2) that income was deemed, in any event, to be that of one of the defendants, but the case had been presented on the basis that it was the income of the companies which had been hidden. If the presumption against double taxation applied, it was not also the income of the company, and the prosecution failed. The Act contained separate definitions of Income Tax Acts and Corporation Tax Acts, and it was counter-argued that deeming provisions for the one, did not exclude the other. No such distinction could apply in this section. The double taxation possibility remained theoretical. The revenue was left with a choice as to how the income might be treated and taxed. That was argued to be a breach of the human right to enjoy one’s goods free of interference from the State. That discretion was held to be within the State’s margin of appreciation. The companies were liable to corporation tax, and the conviction stood.

Judges:

Lord Bingham of Cornhill Lord Nicholls of Birkenhead Lord Steyn Lord Hutton Lord Scott of Foscote

Citations:

[2001] UKHL 46

Links:

House of Lords, Bailii

Statutes:

Finance Act 1936 36, Income and Corporation Taxes Act 1988 739 746

Jurisdiction:

England and Wales

Citing:

Appeal from – Regina v Frank Adam Moran (Attorney General’s Reference No 25 of 2001) CACD 27-Jul-2001
The defendant pleaded guilty to making false statements, and cheating the public revenue by understating his profits as a market trader over a protracted period. The judge made a confiscation order equal to the amount of undeclared profit. On . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Income Tax, Corporation Tax, Human Rights

Updated: 04 June 2022; Ref: scu.166569

James Murray King v Annie Marie Walden (HM Inspector of Taxes): ChD 12 Jun 2001

A decision to impose a penalty on a taxpayer, involved a charge of a criminal nature, for the purposes of article 6 of the Convention. It was necessary, therefore, to proceed with such a matter quickly. Even so, in the imposition of such penalties, there was no point upon which the burden of proof did not lay on the Crown, and the taxpayer had had opportunity at each stage to have his say. In this case, the matter had taken some five years. This was only just acceptable, and the Revenue should look at some way of fast tracking appeals in such matters.

Citations:

Times 12-Jun-2001, [2001] EWHC Ch 419, [2001] STC 822

Links:

Bailii

Statutes:

European Convention on Human Rights art 6(2)

Jurisdiction:

England and Wales

Cited by:

Cited – King v United Kingdom ECHR 16-Nov-2004
The claimant had been subject to tax penalty proceedings. They continued for more than 14 years.
Held: The length of the proceedings exceeded the time properly to be allowed, and infringed his right to a fair trial. Though the taxpayer himself . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Human Rights

Updated: 04 June 2022; Ref: scu.82788

Dorsch Consult Ingenieursgesellschaft v Bundesbaugesellschaft Berlin mbH: ECJ 17 Sep 1997

ECJ Preliminary rulings – Reference to the Court – National court or tribunal within the meaning of Article 177 of the Treaty – Definition – Body competent to hear appeals concerning the award of public contracts.
Approximation of laws – Procedures for the award of public service contracts – Directive 92/50 – Provision requiring Member States to set up appeal bodies – Non-transposition – Consequences – Power of appeal bodies having competence in relation to procedures for the award of public works contracts and public supply contracts to hear appeals relating to procedures for the award of public service contracts as well – Not a necessary consequence – Obligation for the national courts to determine whether the national law in force provides a possibility of appeal.
Summary
In order to determine whether a body making a reference to the Court of Justice is a court or tribunal for the purposes of Article 177 of the Treaty, which is a question governed by Community law alone, a number of factors must be taken into account, such as whether the body is established by law, whether it is permanent, whether its jurisdiction is compulsory, whether its procedure is inter partes, whether it applies rules of law and whether it is independent. The German Federal Public Procurement Awards Supervisory Board, which is established by law as the only body competent to determine, upon application of rules of law and after hearing the parties, whether lower review bodies have committed an infringement of the provisions applicable to procedures for the award of public contracts, whose decisions are binding and which carries out its task independently and under its own responsibility, satisfies those criteria.
It does not follow from Article 41 of Directive 92/50, relating to the coordination of procedures for the award of public service contracts, which requires Member States to ensure that decisions taken by contract-awarding authorities can be reviewed effectively, that, where the directive has not been transposed by the end of the period laid down for that purpose, the appeal bodies of the Member States having competence in relation to procedures for the award of public works contracts and public supply contracts may also hear appeals relating to procedures for the award of public service contracts. However, in order to observe the requirement that domestic law must be interpreted in conformity with the directive and the requirement that the rights of individuals must be protected effectively, the national court must determine whether the relevant provisions of its domestic law allow recognition of a right for individuals to bring an appeal in relation to awards of public service contracts. In this regard, the national court may be required in particular to determine whether such a right of appeal may be exercised before the same bodies as those established to hear appeals concerning the award of public supply contracts and public works contracts.

Judges:

Rodriguez Iglesias P

Citations:

[1997] EUECJ C-54/96, [1997] ECR I-4961

Links:

Bailii

Statutes:

Directive 92/50

Jurisdiction:

European

Cited by:

Cited – Autologic Holdings Plc and others v Commissioners of Inland Revenue HL 28-Jul-2005
Taxpayer companies challenged the way that the revenue restricted claims for group Corporation Tax relief for subsidiary companies in Europe. The issue was awaiting a decision of the European Court. The Revenue said that the claims now being made by . .
Lists of cited by and citing cases may be incomplete.

Taxes Management

Updated: 03 June 2022; Ref: scu.161790

Revenue and Customs and Another v Ben Nevis (Holdings) Ltd and Others: ChD 20 Jul 2012

The claimant sought to make arrangements with a view to collecting substantial arrears of tax due to South Africa. The revenue said that it had that power by virtue of the double taxation treaty with South Aftrica. The company replied that the liabilities arose for years prior to the Convention embodied in the Regulations, andtat they were not recoverable under it.

Judges:

Pelling QC

Citations:

[2012] EWHC 1807 (Ch)

Links:

Bailii

Statutes:

Double Taxation Relief (Taxes on Income) (South Africa) Order 2002, Income and Corporation Taxes Act 1988 788, Finance Act 2006 173, Vienna Convention on the Law of Treaties 28

Jurisdiction:

England and Wales

Citing:

Cited – Re Visser ChD 1928
English law generally does not permit either the direct or indirect enforcement of foreign revenue laws. . .
Cited – Government of India v Taylor HL 1955
The Government of India sought to prove in the voluntary liquidation of a company registered in the United Kingdom but trading in India for a sum due in respect of Indian income tax, including capital gains tax, which arose on the sale of the . .
Cited – Rossano v Manufacturers Life Insurance Co 1963
The plaintiff an Egyptian national bought insurance from the defendant Canadian company (MLI) with branches inter alia in Egypt. When the policies matured, Rassano brought an action in England claiming the money due under them. In defence, MLI . .
Cited – QRS 1 APS and others v Frandsen CA 21-May-1999
The appellants were all Danish companies put into liquidation for asset stripping in contravention of Danish law. The respondent was resident in the UK and had owned them. The Danish tax authorities issued tax demands and the liquidators now sought . .

Cited by:

Appeal from – Ben Nevis (Holdings) Ltd and Another v Revenue and Customs CA 23-May-2013
The company owed very substantial arrears of tax in South Africa. Assets had been transferred to a bank account in London in the name of an associated company. The double taxation treaty with South Africa now provided for mutlual assistance and the . .
Lists of cited by and citing cases may be incomplete.

International, Taxes Management, Litigation Practice

Updated: 02 June 2022; Ref: scu.463008

Commissioners of Inland Revenue v The Crown Court at Kingston, Robin Wayne John Interested Party: QBD 24 Jul 2001

The Crown Court dismissed charges again the interested party alleging conspiracy to defraud the claimants. Tax-saving crosses the border from lawful to criminal when it involves the deliberate and dishonest making of false statements to the Revenue. The Revenue contended that he had created documents to do that precise thing. Companies with cash assets but liability for Corporation tax were purchased. They were lent substantial sums for the purposes of investment, and the interest charges had the effect of allowing reclaims of Corporation tax. They were then to move offshore. The Inland Revenue contended that the loan arrangements were a sham, and that documents had been falsely dated. The defendant was a tax adviser to the scheme.
Held: None of the documentary evidence constituted an admission by the Defendant, nor informed him of any fraudulent activity. It could not be said that the judge’s decision was perverse.

Judges:

Lord Justice Kennedy, Mr Justice Stanley Burton

Citations:

[2001] EWHC Admin 581, [2001] 4 All ER 721

Links:

Bailii

Statutes:

Criminal Justice Act 1987

Jurisdiction:

England and Wales

Corporation Tax, Taxes Management, Crime

Updated: 01 June 2022; Ref: scu.159918

Regina v A Special Commissioner ex parte Morgan Grenfell and Co Ltd; Regina v Martyn Rounding (HM Inspector of Taxes) ex parte Morgan Grenfell and Co Ltd: CA 2 Mar 2001

The inspector of taxes had power to issue a notice requiring access to legally privileged material. The power given by the section included certain exceptions, and those were not to be extended. The special or general commissioners had no power to hear from a taxpayer oral representations as to the issue of such a notice. The statutory procedure requiring the inspector to place all matters before the commissioner when applying for the commissioner’s consent to the notice was a substitute for any inter partes procedure, and displaced any such entirely.

Citations:

Gazette 03-May-2001, Times 17-Apr-2001, [2001] EWCA Civ 329

Links:

Bailii

Statutes:

Taxes Management Act 1970 20(1)

Jurisdiction:

England and Wales

Citing:

Appeal from – Regina v A Special Commissioner, ex parte Morgan Grenfell and Co Ltd Admn 8-Nov-2000
The rights of the inspectors to demand papers under the Act could override the protection of legal privilege which might otherwise be given to them. Construing the Act as a whole it was clear that legal professional privilege was not respected save . .

Cited by:

Cited – Three Rivers District Council and others v Governor and Company of the Bank of England (No 6) HL 11-Nov-2004
The Bank anticipated criticism in an ad hoc enquiry which was called to investigate its handling of a matter involving the claimant. The claimant sought disclosure of the documents created when the solicitors advised employees of the Bank in . .
Appeal from – Regina v Special Commissioner And Another, ex parte Morgan Grenfell and Co Ltd HL 16-May-2002
The inspector issued a notice requiring production of certain documents. The respondents refused to produce them, saying that they were protected by legal professional privilege.
Held: Legal professional privilege is a fundamental part of . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Legal Professions, Income Tax

Updated: 31 May 2022; Ref: scu.147457

Roger Stone (HM Inspector of Taxes) v Richard Henry Hitch; Thomas Henry Hitch and Ian Geoffrey Handy: CA 26 Jan 2001

The essence of whether a deed was a sham, was whether the deed proclaimed one set of intentions, but the parties acted out another. The deeds in this case were capable of being seen as a sham as respects one or more deeds in the combination of documents. The law did not require that every party to every deed forming part of the transaction trail should be a sham, but there must be a common intention that a deed should not take effect according to its tenor.

Judges:

Arden LJ

Citations:

Times 21-Feb-2001, Gazette 01-Mar-2001, [2001] EWCA Civ 1224

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Appeal from – Hitch and Others v Stone (Inspector of Taxes) ChD 7-Apr-1999
A tax avoidance scheme was effective despite being complex and artificial. The documents affected third party rights in potential development land, and it was impossible to conclude it was a sham. . .
See Also – Stone (HM Inspector of Taxes) v Hitch and others CA 26-Jan-2001
As an exception to the general rule, it is not invariably necessary to show, in relation to multi party transactions, that every party to it knew it was a sham.
Arden LJ said: ‘Third, the fact that the act or document is uncommercial, or even . .

Cited by:

Cited – Regina v Stannard CACD 1-Nov-2005
The defendant had been convicted of offences in which he had operated to purchase companies and use false debentures to evade corporation tax. Compensation had been sought under the 1988 Act. It was argued that the confiscation order should be . .
Lists of cited by and citing cases may be incomplete.

Capital Gains Tax, Taxes Management

Updated: 31 May 2022; Ref: scu.147411

Eagerpath Ltd v Edwards (HM Inspector of Taxes): CA 14 Dec 2000

Where the special commissioner had determined that the dispute had been concluded by agreement, the taxpayer was precluded from appealing that decision claiming an ‘error or mistke’ That issue was not one relating to the computation of profits in such a way as to bring the matter within the exception to the section.

Citations:

Times 23-Jan-2001, Gazette 01-Feb-2001, [2000] EWCA Civ 327, [2000] EWCA Civ 328

Links:

Bailii, Bailii

Statutes:

Taxes Management Act 1970 54 33

Jurisdiction:

England and Wales

Citing:

Cited – Carrimore Six Wheelers Ltd v Inland Revenue Commissioners 1944
. .
Appeal from – Eagerpath Ltd v Edwards (Inspector of Taxes) ChD 21-May-1999
Once a dispute on an assessment has been settled between the taxpayer and the Inspector, the taxpayer cannot subsequently appeal against refusal of relief for a claim of an error. There was no point of law in such an error. . .
See Also – Eagerpath Ltd v Edwards (HM Inspector of Taxes) CA 1999
. .

Cited by:

Appealed to – Eagerpath Ltd v Edwards (Inspector of Taxes) ChD 21-May-1999
Once a dispute on an assessment has been settled between the taxpayer and the Inspector, the taxpayer cannot subsequently appeal against refusal of relief for a claim of an error. There was no point of law in such an error. . .
Cited – Inland Revenue and Another v Deutsche Morgan Grenfell Group Plc CA 4-Feb-2005
The company sought repayment of excess advance corporation tax payments made under a mistake of law. The question was the extent of the effect of the ruling in Klienwort Benson, in particular whether it covered sums paid as taxation, and how the law . .
See Also – Eagerpath Ltd v Edwards (HM Inspector of Taxes) CA 1999
. .
Lists of cited by and citing cases may be incomplete.

Corporation Tax, Taxes Management

Updated: 31 May 2022; Ref: scu.147360

QRS 1 APS and others v Frandsen: CA 21 May 1999

The appellants were all Danish companies put into liquidation for asset stripping in contravention of Danish law. The respondent was resident in the UK and had owned them. The Danish tax authorities issued tax demands and the liquidators now sought a similar sum in damages against the respondent.
Held: An English court will not enforce foreign revenue laws here. An action which was substantially intended to recover funds for the payment of outstanding taxes by an insolvent company counted as such. This rule is not overridden by the Convention:’There is no definition of ‘revenue matters’ in the Convention and no decision of the European Court bearing on the point.’ (Leave to appeal to HL refused)

Judges:

Simon Brown LJ, Auld LJ, Thorpe LJ

Citations:

Times 27-May-1999, Gazette 16-Jun-1999, [1999] 3 All ER 298, [1999] EWCA Civ 1463, [1999] 1 WLR 2169, [2000] ILPr 8

Links:

Bailii

Statutes:

Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters (1968) (Cmnd 7395)

Jurisdiction:

England and Wales

Citing:

Followed – Peter Buchanan Limited and Macharg v McVey 1954
(Supreme Court of Ireland) The plaintiff was a company registered in Scotland put into compulsory liquidation by the revenue under a substantial claim for excess profits tax and income tax. The liquidator was really a nominee of the revenue. The . .
Cited – In re State of Norway’s application (Nos 1 and 2) HL 1989
The House considered an application by a foreign state seeking assistance in obtaining evidence here to be used in enforcing its own revenue laws at home.
Held: Rule 3 of the Convention encapsulated a ‘fundamental rule of English Law’, but did . .
Cited – Government of India v Taylor HL 1955
The Government of India sought to prove in the voluntary liquidation of a company registered in the United Kingdom but trading in India for a sum due in respect of Indian income tax, including capital gains tax, which arose on the sale of the . .
Mentioned – O’Reilly v Mackman HL 1982
Remission of Sentence is a Privilege not a Right
The plaintiffs had begun their action, to challenge their loss of remission as prisoners, by means of a writ, rather than by an action for judicial review, and so had sidestepped the requirement for the action to be brought within strict time . .
Cited – Williams and Humbert Ltd v W and H Trade Marks (Jersey) Ltd HL 1986
There had been an expropriation by Spanish decrees of shares in a Spanish company whose English subsidiary had rights in trade marks which it had sold to a Jersey company. The Spanish and English companies sought certain relief in relation to the . .
Cited – Kongress Agentur Hagen Gmbh v Zeehaghe Bv. ECJ 15-May-1990
A Dutch hotel group sued in Holland a German agent who on behalf of his German principal had booked and then cancelled a large number of hotel rooms. When the agent sought to third party his principal under a guarantee, jurisdiction for which was . .
Cited – Gourdain v Nadler ECJ 22-Feb-1979
Brussels Convention. Bankruptcy and proceedings relating to the winding-up of insolvent companies or other legal persons. Action for making good the deficiency. – ‘it is necessary, if decisions relating to bankruptcy and winding-up are to be . .
Cited – Ferdinand M.J.J. Duijnstee v Lodewijk Goderbauer ECJ 15-Nov-1983
A liquidator sought to recover a patent from an employee of the company, a claim held not to be excluded from the Convention.
Europa 1. The Convention of 27 September 1968, which seeks to determine the . .
Cited – Hubbard v Hamburger ECJ 1-Jul-1993
An order for security for costs was being sought against an English solicitor who, in the capacity of executor, was seeking to recover part of the testator’s estate in Germany.
Held: It was discrimination unlawful in European law, to require . .

Cited by:

Cited – Revenue and Customs and Another v Ben Nevis (Holdings) Ltd and Others ChD 20-Jul-2012
The claimant sought to make arrangements with a view to collecting substantial arrears of tax due to South Africa. The revenue said that it had that power by virtue of the double taxation treaty with South Aftrica. The company replied that the . .
Lists of cited by and citing cases may be incomplete.

International, Taxes Management

Updated: 30 May 2022; Ref: scu.146378

PML Accounting Ltd, Regina (on The Application of) v Revenue and Customs: CA 17 Oct 2018

Appeal from a judgment refusing the claimant’s request for an order that the defendants destroy work product derived from what the claimant says was an unlawful notice requiring information and documents to be provided by it in its capacity as a managed service company provider.

Citations:

[2018] EWCA Civ 2231, [2018] WLR(D) 639

Links:

Bailii, WLRD

Statutes:

Income Tax (Earning and Pensions) Act 2003

Jurisdiction:

England and Wales

Taxes Management

Updated: 30 May 2022; Ref: scu.625962

Hitch, Regina (on the Application of) v Commissioners for the Special Purposes of the Income Tax Acts: Admn 4 Mar 2005

Before the appeal had been concluded under section 45(3), one of the two commissioners was incapacitated. The taxpayer appealed the refusal of a de novo hearing and the replacement of the tax commissioner.
Held: The reconstitution of the panel did not require the consent of the parties. The balance of authority was that the incapacity of a judge during a case did not mean a subsequent judge could not continue that hearing without restarting. Whether or not it was necessary was one for each case on its merits.

Citations:

[2005] EWHC 291 (Admin), Times 14-Mar-2005, [2005] 1 WLR 1651, [2005] STC 474

Links:

Bailii

Statutes:

Taxes Management Act 1970 45(3)

Jurisdiction:

England and Wales

Citing:

Distinguished – Coleshill v Manchester Corporation 1928
During the trial, the judge, Mr Justice Fraser had died and the case had been continued by Mr Justice Acton ‘at the urgent request of the parties’ with earlier witnesses not being recalled but the new judge having recourse to the transcripts.
Considered – The Forest Lake 1968
The presiding judge sitting with two elder brethren of Trinity House, was compelled to retire due to ill health in the middle of the case. The president Sir Jocelyn Simon ordered, in the circumstances, that the action be heard de novo and Mr Justice . .
Cited – In re British Reinforced Concrete Engineering Co Ltd 1929
Practice on incapacity of the judge during a trial. . .
Lists of cited by and citing cases may be incomplete.

Capital Gains Tax, Taxes Management

Updated: 30 May 2022; Ref: scu.223166

Regina v A Special Commissioner, ex parte Morgan Grenfell and Co Ltd: Admn 8 Nov 2000

The rights of the inspectors to demand papers under the Act could override the protection of legal privilege which might otherwise be given to them. Construing the Act as a whole it was clear that legal professional privilege was not respected save where expressly preserved.

Citations:

Gazette 15-Dec-2000, Times 22-Nov-2000, [2000] EWHC Admin 415

Links:

Bailii

Statutes:

Taxes Management Act 1970

Jurisdiction:

England and Wales

Cited by:

Appeal from – Regina v A Special Commissioner ex parte Morgan Grenfell and Co Ltd; Regina v Martyn Rounding (HM Inspector of Taxes) ex parte Morgan Grenfell and Co Ltd CA 2-Mar-2001
The inspector of taxes had power to issue a notice requiring access to legally privileged material. The power given by the section included certain exceptions, and those were not to be extended. The special or general commissioners had no power to . .
Lists of cited by and citing cases may be incomplete.

Taxes Management, Legal Professions

Updated: 29 May 2022; Ref: scu.140231

Regina v Her Majesty’s Commissioners of Inland Revenue ex parte Bishopp (for and on Behalf of Partners In Price Waterhouse (a Firm)): Admn 27 Apr 1999

A court cannot answer questions in abstract form. An accountancy practice seeking an answer to how it would be taxed if incorporated as a limited partnership off-shore could not rely upon the court to answer a hypothetical question.

Judges:

Dyson J

Citations:

Times 18-May-1999, [1999] EWHC Admin 358, [1999] STC 531

Links:

Bailii

Cited by:

Cited – Claimants under the Loss Relief Group Litigation Order v Inland Revenue Commissioners ChD 3-Mar-2004
Various claimants sought to have issues of law on group relief and other issues settled under a group litigation order.
Held: The High Court had no jurisdiction to hear such matters until they had first been raised in ordinary tax appeals . .
Lists of cited by and citing cases may be incomplete.

Company, Taxes Management

Updated: 28 May 2022; Ref: scu.139622

Parker v Revenue and Customs: FTTTx 13 Nov 2020

PROCEDURE – whether a ‘decision letter’ was appealable – whether it was a ‘closure notice’ – whether it amended discovery assessments – interlocutory hearing to determine what was under appeal to the Tribunal – directions issued for Statement of Case

Citations:

[2020] UKFTT 465 (TC)

Links:

Bailii

Jurisdiction:

England and Wales

Taxes Management

Updated: 27 May 2022; Ref: scu.656860