HMRC’s attempts to reverse the limitations imposed by the Court of Appeal backfired, as Ben Elliott (Pump Court Tax Chambers) explains.
The follower notice (FN) legislation was one of a series of statutory powers granted to HMRC in the last decade to address tax avoidance. Broadly the legislation empowers HMRC to issue a notice to a taxpayer where it considers that the judgment in another case has determined their case. The consequences of receiving a FN are harsh: if the taxpayer does not concede their case they face a penalty of up to 50% (30% for penalties assessed from 10 June 2021) of the tax at stake. However the precise circumstances in which HMRC could issue an FN have been unclear until the decision of the Supreme Court in R (oao Haworth) v HMRC [2021] UKSC 25.
The follower notice legislation
Whilst there are various requirements that...
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HMRC’s attempts to reverse the limitations imposed by the Court of Appeal backfired, as Ben Elliott (Pump Court Tax Chambers) explains.
The follower notice (FN) legislation was one of a series of statutory powers granted to HMRC in the last decade to address tax avoidance. Broadly the legislation empowers HMRC to issue a notice to a taxpayer where it considers that the judgment in another case has determined their case. The consequences of receiving a FN are harsh: if the taxpayer does not concede their case they face a penalty of up to 50% (30% for penalties assessed from 10 June 2021) of the tax at stake. However the precise circumstances in which HMRC could issue an FN have been unclear until the decision of the Supreme Court in R (oao Haworth) v HMRC [2021] UKSC 25.
The follower notice legislation
Whilst there are various requirements that...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
