HMRC have published their tax avoidance litigation decision results for 2017 to 2018 which show 23 cases won by HMRC, none lost and one mixed result.
The cases range from IR35 to employee benefit trusts, various other disguised remuneration schemes, film partnerships, capital allowance schemes, tax on QCBs, capital loss schemes and offshore avoidance schemes, and include:
- RFC 2012 Plc (in liquidation) (formerly The Rangers Football Club Plc) v Advocate General for Scotland [2017] UKSC 45 where the Supreme Court agreed with HMRC that loans made to employees under the club's EBT loan scheme were in fact remuneration and so subject to tax and NIC.
- Christianuyi Limited & Others v HMRC [2018] UKUT10 an Upper Tribunal case about IR35 and managed service companies.
- See IR35 and Managed Service companies
- Anthony and Tracy Lee Hancock v HMRC [2017] EWCA Civ 198 a case where the Court of Appeal ruled that the conversion of QCB and non QCB loan notes received on the sale of a business into one QCB, were taxable
- Conegate Limited v HMRC [2018] TC06340 which saw the First Tier tribunal denying a claim for capital loss relief on the sale of shares in a Premier League football club due to the application of the market value rule.
The case which resulted in a draw, relating to a well-known capital loss scheme, was decided on the basis that whilst the capital loss was denied, the taxpayer did not also suffer income tax on the same amount.
What is surprising here is not the results but the low number of avoidance cases which were heard by the courts, at twenty-four in one year that is just two per month.
External Link:
Tax Avoidance Litigation Decisions
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