Will the UK tax profession ditch complex tax planning altogether ? HM Revenue and Customs (HMRC) has clocked up another three major legal victories over corporate tax avoidance schemes, protecting over £100 million of tax.
HM Revenue and Customs (HMRC) has clocked up another three major legal victories over corporate tax avoidance schemes, protecting over £100 million of tax.
The successes include a Court of Appeal win concerning an avoidance scheme used by a number of large businesses. The lead case was Vocalspruce Limited, and there were 43 follower cases – a combined total of £85.4 million of tax was at stake. A number of other users of the scheme have already settled with HMRC, protecting a further £65.7 million.
The second case is an Upper Tribunal decision in HMRC’s favour in a case involving Fidex Ltd, a subsidiary of the global banking group BNP Paribas – a ruling which protects £17.2 million in tax.
In the third case, a First-Tier Tribunal found for HMRC against an avoidance scheme used by one of the UK’s biggest waste management companies, Biffa Group. Biffa's case, along with two other cases on use of the same scheme, involve around £15 million of tax. More than £16 million had already been settled by other users of the scheme ahead of the litigation.