Tax cases

Wasted costs

The Revenue had carried out an investigation into two taxpayers who had sold their shares in a company for £20.3 million. The taxpayers were unco-operative and failed to pay penalties and cost orders made against them. The Revenue applied for a wasted costs order against the taxpayers' solicitors in relation to an appeal against a Special Commissioners' decision dismissing appeals against certain penalties.
The High Court judge said that the appeal had been hopeless and that the taxpayers and their solicitors had tried to evade or delay payment of capital gains tax. The solicitors had been prepared to go along with the taxpayers' schemes in this respect. Their conduct had led to the waste of the Revenue's costs so it was just to make a wasted costs order against them.
The Revenue's application was allowed.
Morris and another v Roberts Chancery Division 25 May 2005.

Charitable...