Failed avoidance scheme, insolvency and directors' duties
In S Hunt (liquidator of Marylebone Warwick Balfour Management Ltd) v Richard Balfour-Lynn and others [2022] EWHC 784 (Ch) (6 April 2022) the High Court dismissed the liquidator’s arguments that company directors had failed to take carry out their duties with the necessary care as they had entered into a failed avoidance scheme. Importantly the company had taken professional advice from a leading firm both when the scheme was implemented and throughout the course of HMRC’s enquiries. Many companies have gone into insolvency after the failure of an avoidance scheme: this decision will give those of their directors who did take and follow proper advice considerable grounds for optimism that they will be protected from the claims of a liquidator. Read the decision.
In Glanbia Milk Ltd v HMRC [2022] UKFTT 108 (TC) (24 March 2022) the FTT...
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Failed avoidance scheme, insolvency and directors' duties
In S Hunt (liquidator of Marylebone Warwick Balfour Management Ltd) v Richard Balfour-Lynn and others [2022] EWHC 784 (Ch) (6 April 2022) the High Court dismissed the liquidator’s arguments that company directors had failed to take carry out their duties with the necessary care as they had entered into a failed avoidance scheme. Importantly the company had taken professional advice from a leading firm both when the scheme was implemented and throughout the course of HMRC’s enquiries. Many companies have gone into insolvency after the failure of an avoidance scheme: this decision will give those of their directors who did take and follow proper advice considerable grounds for optimism that they will be protected from the claims of a liquidator. Read the decision.
In Glanbia Milk Ltd v HMRC [2022] UKFTT 108 (TC) (24 March 2022) the FTT...
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