TaxWatch has urged HMRC to rescind the settlement agreement it reached with GE earlier in 2021 or face the prospect of judicial review of that decision.
Court proceedings had culminated in the Court of Appeal finding that HMRC’s claim for rescission of a previous agreement with the company was time-barred. HMRC had been granted leave to appeal the time limitation point to the Supreme Court but settled before the case was heard.
TaxWatch argues that, ‘given the allegations of fraud made by HMRC, the department should have initiated a criminal investigation under their criminal investigations policy’.
In the earlier proceedings, HMRC had argued that it could rescind a previous agreement with GE on grounds that new information suggested that GE had misrepresented its position. The Court of Appeal ([2021] STC 887) held that HMRC’s claim on that point was time-barred (i.e. the six-year limitation period would apply). This was a significant decision because, had the point been allowed, it would have raised the prospect of discussion of tax fraud allegations in relation to a large MNE, in open court proceedings.
In September 2021, the All-party Parliamentary Group on Anti-corruption and Responsible Tax criticised the settlement as depriving the taxpayer ‘millions in lost tax revenue’. HMRC’s press office noted at the time that ‘HMRC does not do sweetheart deals’ and ‘cannot settle for any amount less than we would reasonably expect to obtain from going to court’.
TaxWatch says that if HMRC has not taken action before 8 December, it will consider launching a judicial review of the settlement. Responding to the TaxWatch article, an HMRC spokesperson told Tax Journal:
‘We are unable to comment on potential or on-going litigation. We make sure every taxpayer, no matter what their size, pays everything they owe under UK law.
‘Between 2010 and 2021 HMRC secured over £94bn in additional revenues from large businesses. This is money that goes to fund our vital public services, like the NHS.’
TaxWatch has urged HMRC to rescind the settlement agreement it reached with GE earlier in 2021 or face the prospect of judicial review of that decision.
Court proceedings had culminated in the Court of Appeal finding that HMRC’s claim for rescission of a previous agreement with the company was time-barred. HMRC had been granted leave to appeal the time limitation point to the Supreme Court but settled before the case was heard.
TaxWatch argues that, ‘given the allegations of fraud made by HMRC, the department should have initiated a criminal investigation under their criminal investigations policy’.
In the earlier proceedings, HMRC had argued that it could rescind a previous agreement with GE on grounds that new information suggested that GE had misrepresented its position. The Court of Appeal ([2021] STC 887) held that HMRC’s claim on that point was time-barred (i.e. the six-year limitation period would apply). This was a significant decision because, had the point been allowed, it would have raised the prospect of discussion of tax fraud allegations in relation to a large MNE, in open court proceedings.
In September 2021, the All-party Parliamentary Group on Anti-corruption and Responsible Tax criticised the settlement as depriving the taxpayer ‘millions in lost tax revenue’. HMRC’s press office noted at the time that ‘HMRC does not do sweetheart deals’ and ‘cannot settle for any amount less than we would reasonably expect to obtain from going to court’.
TaxWatch says that if HMRC has not taken action before 8 December, it will consider launching a judicial review of the settlement. Responding to the TaxWatch article, an HMRC spokesperson told Tax Journal:
‘We are unable to comment on potential or on-going litigation. We make sure every taxpayer, no matter what their size, pays everything they owe under UK law.
‘Between 2010 and 2021 HMRC secured over £94bn in additional revenues from large businesses. This is money that goes to fund our vital public services, like the NHS.’
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