Application for costs: HMRC delay in settling case
In Southwest Communications Group Ltd v HMRC (TC02370 – 20 November) a company (S) claimed a deduction for sponsorship payments to a major rugby club. In May 2008 HMRC began an enquiry into S’s return and in March 2010 they issued a notice of amendment rejecting the claim on the grounds that the expenditure was not wholly and exclusively for the purpose of S’s business. S appealed. In January 2012 HMRC decided not to contest the appeal. S applied for costs contending that HMRC had acted unreasonably in not settling the case sooner. The First-tier Tribunal accepted this contention. Judge Raghavan observed that HMRC had received S’s witness statements in June 2011 and held that HMRC should have settled the case within 28 days of receiving the witness statements. Accordingly he directed that HMRC should pay S’s costs...
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:
Application for costs: HMRC delay in settling case
In Southwest Communications Group Ltd v HMRC (TC02370 – 20 November) a company (S) claimed a deduction for sponsorship payments to a major rugby club. In May 2008 HMRC began an enquiry into S’s return and in March 2010 they issued a notice of amendment rejecting the claim on the grounds that the expenditure was not wholly and exclusively for the purpose of S’s business. S appealed. In January 2012 HMRC decided not to contest the appeal. S applied for costs contending that HMRC had acted unreasonably in not settling the case sooner. The First-tier Tribunal accepted this contention. Judge Raghavan observed that HMRC had received S’s witness statements in June 2011 and held that HMRC should have settled the case within 28 days of receiving the witness statements. Accordingly he directed that HMRC should pay S’s costs...
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:
