TaxCorporate TaxTaxman promises ‘no compromise’ court cases

Taxman promises 'no compromise' court cases

Official statement says that HM Revenue & Customs will no longer negotiate settlements in tax court cases

The taxman will no longer negotiate settlements with taxpayers who use tax
planning that is challenged in court.

HM Revenue & Customs is to adopt a no compromise stance in cases where it
believes it has a strong case. In such cases HMRC will not settle for anything
less than 100p in the pound.

Chris Oates, tax partner at Ernst & Young, said the move would provide
more clarity about whether a case would go to litigation, but said there were
concerns about the consequences of the strategy.

‘There is a question of resources, said Oates. ‘Resources are pressed at
HMRC, and this strategy is going to add to that pressure, as several new
solicitors will have to be hired to cope with the increased number of cases.’

There are also concerns that on complex tax matters, inspectors will no
longer be able to use their judgement to work through issues with businesses, as
they will have to pass on issues for litigation.

Further reading:

Read the
HMRC litigation strategy document
  

Taxman drops ‘gung-ho’ approach to litigation

Related Articles

HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

1w Emma Smith, Managing Editor
SMEs paying higher rate of corporation tax than big businesses

Corporate Tax SMEs paying higher rate of corporation tax than big businesses

2w Alia Shoaib, Reporter
Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

Corporate Tax Big names, little tax: Airbnb, Facebook, Kellogg’s, eBay

3m Alia Shoaib, Reporter
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

3m Emma Rawson, ATT Technical Officer
EU divided over radical tax reforms targeting tech giants

Corporate Tax EU divided over radical tax reforms targeting tech giants

4m Alia Shoaib, Reporter
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

4m Austin Clark, Reporter
How to educate your clients about tax avoidance

Corporate Tax How to educate your clients about tax avoidance

4m Clear Books | Sponsored
CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

Corporate Tax CGT clampdown nets HMRC £124m – but could lead to increase in use of avoidance schemes

4m Austin Clark, Reporter