Tax disputes & litigation
From time to time taxpayers find themselves in dispute with the tax authorities. In particular there may be a disagreement as to the existence or extent of a tax liability. In this context several issues may arise:
- Clients may wish to take confidential, independent advice as to their rights and liabilities.
- Questions may also arise as to the precise scope of the powers of HM Revenue & Customs (“HMRC”) to obtain information and/or documents.
- Issues may arise as to the scope of any penalties that may be chargeable in respect of unpaid tax.
- Sometimes it becomes necessary to take a matter to a tribunal. A new system for tax appeals came into effect on 1st April 2009. In outline the following arrangements now apply:
- Most appeals will go to the first tier tribunal.
- Cases are allocated to one of four categories: default paper, basic, standard and complex. Different procedures apply to the four categories of case. The intention appears to be that simple points can be disposed of without a hearing whereas complex matters are subject to a more elaborate procedure. Costs are not normally available for cases heard in the default paper, basic or standard categories.
- Complex cases are subject to a special costs regime and in some circumstances may be transferred straight to the upper tribunal. In addition, the unsuccessful party at first instance may seek permission to appeal to the upper tribunal on a point of law.
- The upper tribunal hears appeals from the tax chamber of the first-tier tribunal. It also hears cases transferred from the tax chamber of the first tribunal. Finally, it conducts judicial reviews of the tax functions of HMRC. The upper tribunal has full discretion to award costs in the proceedings.
- Appeals from the upper tribunal go to the Court of Appeal. Leave to appeal to the Court of Appeal is needed, either from the Upper Tribunal or from the Court of Appeal itself.
Examples of how we can help
- Advise on the merits of a case;
- Advise on the powers of HMRC;
- Make recommendations as to how to proceed;
- Assist with Tribunal and Court proceedings.;
- Draw on our knowledge of the tax system as a whole when advising;
- Call on accountants and overseas tax specialists (with whom we have long-standing links) to assist if required.
Please contact us to find out more about our services and discuss your situation in more detail.
