Tax Rebates & Refunds

HMRC won 3 key tax avoidance court cases last month

August 25, 2012
Posted in Other Tax — Written by Jennifer

HM Revenue & Customs (HMRC) has announced that it has won three court cases relating to complex tax avoidance schemes in the last month alone.

Speaking of the department’s recent victories in court, the HMRC has said that the decisions had saved as much as £200 million in tax being lost to complex tax avoidance schemes. Two of the cases were dealt with by tax tribunals, whilst the third involved an artificial scheme to avoid capital gains tax and was heard in the Court of Appeal.

Jim Harra, the director general of business tax for HMRC, said:

“We have now had three major court successes in avoidance cases in the last month alone and I hope this sends a very clear message: These schemes don’t come cheap, you carry a serious risk that you’ll end up paying the tax and interest on top of a set-up charge which can run into the hundreds of thousands of pounds.”

However, whilst HMRC has had some success in the courts recently in relation to its crackdown on tax avoidance schemes, accountant Mike Warburton from Grant Thornton says the department is not winning them all. He said:

“It may be that they are winning at the moment, but that is not always the case and three does not make a trend,”

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