PwC seeks refund on Lehmans’ tax

pwc logo

is taking on several tax authorities in a bid to claw back corporation tax paid
by Lehman Brothers European arm, before its market collapse last year.

The firm is hoping to recover ‘a material sum’ by getting corporate tax
refunds on the back of tax losses sustained after Lehman Brothers collapse.
Joint administrator Tony Lomas confirmed talks were continuing with HMRC
discussions a priority. ‘We are pursuing recovery of a material sum of UK tax
paid in the recent past,’ he said.

Confidentiality issues meant Lomas could not elaborate on the amount being
sought or the tax jurisdictions that the administrators were talking to.

However, the firm said there were a number of issues that hinged on getting
the green light from HM Revenue & Customs.

It is currently locked in talks with the taxman to get the issues resolved,
with the corporate tax refund being a priority. In its six-month report to
creditors, PwC said: ‘Various tax-related aspects will potentially be affected
or influenced by HMRC including, in particular, successfully obtaining a refund
of corporation tax using LBIE tax losses.

‘The tax function has met and spoken regularly with senior inspectors within
HMRC to reach quick agreement on matters that could potentially deplete the
value of the estate or delay the tax reclaim process.’

The firm said it had put procedures in place for filing the corporation tax
returns needed to obtain the refunds, but there were a large number of these to
be drawn up and the process was highly complicated.

HMRC said it was unable to comment for confidentiality reasons.

Related reading

Life Belt with Computer Folders