David Harkness and Rob Sharpe (Clifford Chance) examine a tribunal decision that provides a warning to taxpayers on relying on informal assurances or exchanges of correspondence.
Where a difference arises between taxpayer and HMRC about the amount of tax owed one way of resolving matters is through a contractual settlement. The formalities for reaching a contractual settlement are generally well understood and it is rare for problems to arise. However there are examples of a disagreement arising where one party (usually the taxpayer) considers a binding agreement has been reached and the other party (usually HMRC) denies that. The recent decision in Kyte v HMRC [2018] EWHC 1146 (Ch) provides an illustration of the issues that can arise.
Legal background
HMRC’s powers to enter into settlement agreements are well established in both statute and case law....
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David Harkness and Rob Sharpe (Clifford Chance) examine a tribunal decision that provides a warning to taxpayers on relying on informal assurances or exchanges of correspondence.
Where a difference arises between taxpayer and HMRC about the amount of tax owed one way of resolving matters is through a contractual settlement. The formalities for reaching a contractual settlement are generally well understood and it is rare for problems to arise. However there are examples of a disagreement arising where one party (usually the taxpayer) considers a binding agreement has been reached and the other party (usually HMRC) denies that. The recent decision in Kyte v HMRC [2018] EWHC 1146 (Ch) provides an illustration of the issues that can arise.
Legal background
HMRC’s powers to enter into settlement agreements are well established in both statute and case law....
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:
