Tax Take
Rialas: UT dismisses HMRC's appeal in transfer of assets abroad case
Taxpayer succeeds in defending HMRC appeal against transfer of assets abroad / TOAA regime application; anti-avoidance measures did not apply, held the Upper Tribunal.
Read moreV@ update - January 2021
Welcome to the January 2021 edition of RPC's V@, an update on developments in the VAT world that may impact your business.
Read moreDevelopment Securities – Court of Appeal considers company tax residence
In HMRC v Development Securities PLC and Others [2020] EWCA Civ 1705, the Court of Appeal (CoA) has allowed HMRC's appeal against a decision of the Upper Tribunal (UT) and confirmed that certain Jersey based companies were resident in the UK, rather than in Jersey.
Read moreWhat "winning on a technicality" really means in disputes with HMRC and why technical points are very important
In the latest episode of the Taxing Matters podcast, Harry Smith gives a crash course in procedural arguments in the context of a dispute with HMRC.
Read moreProject Blue (No 2): HMRC must refund overpaid SDLT
In Project Blue Ltd v HMRC [2020] UKFTT 475 (TC), the First-tier Tribunal (FTT) held that the taxpayer was entitled to repayment of SDLT, as part of the consideration for the property in question was contingent, within the meaning of section 51, Finance Act 2003 (FA 2003) and was never paid.
Read moreCorporate Tax Update - January 2021
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from December 2020. Included in this update are summaries of an unexpected twist in the DAC6 saga, a call for evidence on VAT and the ‘sharing economy’, and the Court of Appeal decision in the Development Securities case. As ever we hope you, your family and friends are all staying safe.
Read moreThe new corporate criminal offence of failure to prevent tax evasion
In this episode, we are joined by Sam Dean, who spearheads HMRC's campaign to raise awareness of the corporate criminal offence of failure to prevent tax evasion.
Read moreLondon Clubs Management - non-negotiable chips and promotional vouchers not part of casino's "banker's profits" for the purpose of calculating gaming duty
In HMRC v London Clubs Management Ltd [2020] UKSC 49, the Supreme Court held that where casinos provide gamblers with non-negotiable chips and/or promotional vouchers (Non-negs) which could be used for gaming but not encashed or exchanged for goods or services, they do not form part of the casino's "banker's profits" for the purpose of calculating its liability to gaming duty.
Read moreEurochoice: Company and its director held jointly and severally liable for HMRC's costs
In Eurochoice Ltd v HMRC [2020] UKFTT 449 (TC), the First-tier Tribunal (FTT) has held that a company and its director are jointly and severally liable for HMRC's costs in circumstances where only the company was party to the appeal proceedings.
Read moreTotal – Court of Appeal considers meaning of "just and reasonable" apportionment of profits
In Total E&P North Sea UK Ltd and Another v HMRC [2020] EWCA Civ 1419, the Court of Appeal (CoA) allowed the appellant companies' appeal and decided that the basis of the companies' apportionment of adjusted ring-fence profits was just and reasonable, for the purposes of an election under section 7(5), Finance Act 2011 (FA 2011).
Read moreCumEx - probably the biggest tax scandal you've never heard of
In this episode, we are joined by Bloomberg finance reporter Donal Griffin. For the past 18 months Donal has been following the development of the multi-billion tax trading scandal known as CumEx.
Read moreMcCabe: HMRC not required to disclose documents relating to discussions with the Belgian tax authority
In Kevin McCabe v HMRC [2020] UKUT 266 (TC), the Upper Tribunal (UT) has held that the First-tier Tribunal (FTT) had been correct not to order HMRC to disclose documents relating to discussions it had with the Belgian tax authority, as the documents had no probative value and the tax authorities had raised confidentiality issues.
Read moreContentious tax: quarterly review
HMRC is increasingly targeting multinationals, in particular by questioning their transfer pricing arrangements and ensuring that they are not artificially diverting profits away from the UK. Additionally, HMRC has made a number of arrests and begun criminal investigations in relation to suspected fraud concerning the coronavirus job retention scheme.
Read moreRT Rate: Legitimate expectation rights not engaged
In RT Rate Ltd and Others v HMRC [2020] UKFTT 392 (TC), the First-tier Tribunal (FTT) has held that it does not have jurisdiction to consider claims for repayment of VAT based on the EU law principle of legitimate expectation.
Read moreTaxing Matters: The impact of the loan charge with Keith Gordon
Welcome to the Taxing Matters podcast. In this episode, Keith Gordon joins Alice Kemp to discuss the Loan Charge; a topic very dear to his heart and one that has had a devastating impact on many who have been victims of schemes.
Read moreTax Bites - December 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreAMW Estates – Part of HMRC's pleaded case struck out as it had no realistic prospect of success
In AMW Estates Ltd v HMRC [2020] UKFTT 410 (TC), the First-tier Tribunal (FTT) struck out part of HMRC's amended Statement of Case (SoC) alleging that a taxpayer had actual or constructive knowledge of its supplier's fraud as it had no realistic prospect of success.
Read moreV@ update - November 2020
Welcome to the November 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.
Read moreOsborne: Tribunal takes a dive into allowable expenditure
In Robert John Osborne v HMRC [2020] UKFTT 373 (TC), the First-tier Tribunal (FTT) held that expenditure on fitness training was allowed because it was wholly and exclusively incurred for the purpose of the taxpayer's occupation as a saturation diver.
Read moreCustoms and excise quarterly - November 2020
In this update we report on (1) import duty and VAT when importing decorations and awards; (2) the moving of excise goods under the Northern Ireland Protocol; and (3) an HMRC Tax Importation and Impact Note in relation to the new Customs (Bulk Customs Declaration and Miscellaneous Amendments) (EU Exit) Regulations 2020.
Read moreTaxing Matters: An interview with the President of the First-tier Tribunal
Welcome to the Taxing Matters podcast - in this episode, we are joined by a very special guest; Judge Sinfield, President of the First Tier Tribunal Tax Chamber (FTT). Judge Sinfield shares his impressive knowledge of the inner workings and intricacies of the tax tribunals, including little known facts like the FTT deals with appeals concerning MPs' expenses!
Read moreCheshire Centre – HMRC ordered to pay taxpayer's costs due to its unreasonable behaviour
In HMRC v Cheshire Centre for Independent Living [2020] UKUT 275 (TCC), the Upper Tribunal (UT) ordered HMRC to pay the taxpayer's costs even though HMRC had been successful as it had acted unreasonably in introducing a new ground of appeal.
Read moreHMRC issues nudge letters targeting residence and domicile
In an extension of its 'nudge' letters campaign, HMRC is writing to wealthy taxpayers encouraging them to bring their tax affairs into line.
Read moreBelloul – Ignorance of the law was a 'reasonable excuse'
In Bachir Mohamed Belloul v HMRC [2020] UKFTT 312, the First-tier Tribunal (FTT) held that a taxpayer's ignorance of the law was a 'reasonable excuse' for failing to notify HMRC of his liability to pay High Income Child Benefit Charge (HICBC).
Read moreTop COP9 tips in the era of furlough fraud
Welcome to the ninth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.
Read moreTax Bites - November 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreJurisdiction and the Rule of Law
In R (oao Boulting & Anor) v HMRC [2020] EWHC 2207 (Admin), the High Court refused permission to bring a judicial review claim against HMRC, on the basis that the taxpayer had an 'alternative remedy'.
Read moreV@ update - October 2020
Welcome to the October 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.
Read moreTaxing Matters: A handy guide to appeals
Welcome to the eighth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.
Read moreWired Orthodontics – Tribunal expresses concern about potential inappropriate interference by HMRC's solicitor with the evidence of an independent expert witness
In Wired Orthodontics Ltd and others v HMRC [2020] UKFTT 290 (TC), the First-tier Tribunal (FTT) refused an application for disclosure of documents and information passing between the solicitors for HMRC and their appointed expert witness.
Read moreCorporate Tax Update - October 2020
Welcome to the latest edition of our Corporate Tax Update, written by members of RPC’s tax team. This month’s update reports on some of the key developments from September 2020. Included in this update are summaries of the Chancellor’s tax announcements as part of the Winter Economy Plan and the EC’s decision to appeal the decision of the European General Court in the Apple state aid case. There are also updates on new HMRC guidance on off-payroll working for private businesses and the VAT treatment of payments for early termination of contracts. As ever we hope you, your family and friends are all staying safe.
Read moreBox – child benefit charge interpreted as 'income' for the purpose of discovery assessments
In Martin Richard Box v HMRC [2020] UKFTT 353 (TC), the First-tier Tribunal (FTT) dismissed a taxpayer's appeal concerning liability to pay the high-income child benefit (HICB) charge, on the basis that the charge constituted income for the purpose of discovery assessments.
Read moreTaxing matters: Predicting the tax world of the future
Welcome to the seventh episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.
Read moreIrish Bank – HMRC entitled to disallow interest deductions claimed by UK permanent establishments
In Irish Bank Resolution Corporation Ltd (in special liquidation) and another v HMRC [2020] EWCA Civ 1128, the Court of Appeal upheld the decisions of the First-tier Tribunal (FTT) and the Upper Tribunal (UT) and confirmed that HMRC was entitled to disallow interest deductions claimed by the UK permanent establishments (PEs) of two Irish companies.
Read moreTax Bites - October 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreRBS – HMRC's application for specific disclosure refused
In Royal Bank of Scotland Group Plc v HMRC [2020] UKFTT 321 (TC), the First-tier Tribunal (FTT) refused an application by HMRC for a direction requiring the taxpayer to provide specific disclosure.
Read moreContentious tax: quarterly review - September 2020
The increased flow of information and data to HMRC under the common reporting standard (CRS) has prompted a flurry of so-called ‘nudge’ letters to be issued by HMRC to taxpayers whose offshore affairs it considers may not be in order.
Read moreTaxing Matters: Fair's Fair – Judicial Review and Tax Disputes
Welcome to the sixth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax developments and discuss the commercial impact they could have on your business.
Read moreHMRC to gain further information gathering powers
Draft legislation, published as part of Finance Bill 2020/21, will, if enacted, grant HMRC the power to issue 'Financial Institution Notices', requiring certain financial institutions to disclose information they hold about certain taxpayer(s) and their assets, without the safeguards which are currently in place.
Read moreV@ update - September 2020
Welcome to the September 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.
Read moreAhmed - HMRC cannot 'refresh' penalty time limit by reissuing information notices
In Salim Ahmed v HMRC [2020] UKFTT 337 (TC), the First-tier Tribunal (FTT) allowed the taxpayer’s appeal against a penalty for failing to comply with an information notice because the penalty notice was not issued within 12 months of the taxpayer becoming liable to a penalty and HMRC could not refresh the time period by issuing a subsequent information notice which merely repeated earlier information notices.
Read moreKickabout Productions - HMRC wins IR35 re-match
In Kickabout Productions Ltd [2020] UKUT 216 (TCC), the Upper Tribunal (UT) has allowed HMRC's appeal and confirmed that the relationship between a radio station and one of its sports presenters fell within the IR35 regime.
Read moreTaxing Matters: HMRC as a Public Authority – what does that mean?
Welcome to the fifth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax principles and discuss the commercial impact they could have on your business.
Read moreJones – Taxpayer's appeal allowed as FTT failed to consider vital evidence
In Heather Jones v HMRC [2020] UKUT 229 (TCC), the Upper Tribunal (UT) allowed an appeal against a decision of the First-tier Tribunal (FTT) upholding a discovery assessment issued in respect of income tax on a severance payment.
Read moreTax Bites - September 2020
Welcome to the latest edition of RPC's Tax Bites - providing monthly bite-sized updates from the tax world.
Read moreHMRC's new powers to investigate furlough abuse
The Government's Coronavirus Job Retention Scheme (CJRS) was announced on 20 March 2020, with the aim of safeguarding UK jobs during the coronavirus pandemic. The CJRS has undoubtably assisted in protecting jobs but it was, by necessity introduced quickly, with little and complex guidance, which has made it, in the words of HMRC's Chief Executive Jim Harra, a "magnet for fraudsters".
Read moreTaxing Matters: Alternative dispute resolution with Adam Craggs
Welcome to the fourth episode of our Taxing Matters podcast. In this series we review land-mark cases and key tax principles and discuss the commercial impact they could have on your business.
Read moreV@ update - August 2020
Welcome to the August 2020 edition of RPC's V@, an update on developments in the VAT world that may impact your business.
Read moreHackett – Tribunal considers whether HMRC's decision to proceed by way of civil penalty rather than criminal prosecution was an abuse of process
In Lindsay Hackett v HMRC [2020] UKUT 212 (TCC), the Upper Tribunal (UT) has confirmed that the decision whether to bring civil or criminal proceedings is a matter for HMRC to decide with any such decision being amenable to challenge by way of judicial review.
Read moreCustoms and excise quarterly update - August 2020
In this update we report on (1) the government's guidance concerning border planning for the end of the transition period; (2) the government's plans to support customs intermediaries; and (3) the government's recently published policy papers on moving goods under the Northern Ireland Protocol, following the transition period. We also comment on three cases relating to (1) whether UK acquisition VAT can apply when a bonded warehouse is not located in the UK; (2) the clarification of factors HMRC can use to determine whether a person is 'fit and proper' to carry out a controlled activity; and (3) whether an acquittal of a criminal charge can preclude HMRC from issuing an excise duty assessment.
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