No jurisdiction

HMRC and the South African Revenue Service (SARS) obtained a freezing order and a judgment against Ben Nevis (Holdings) Ltd a company incorporated in the British Virgin Isles and HSBCT a company incorporated in Guernsey.

The defendants appealed on the basis the regulations of the SARS were unenforceable in the English courts.

In reaching its decision the High Court took into account the ‘revenue rule’ which states that the revenue services of foreign governments are unable to enforce foreign taxes in England except where legislation permits.

The court agreed there was no arguable basis for maintaining a claim brought by the SARS and so dismissed proceedings in so far as they had been brought by that entity.

It was also ruled that HMRC had not shown they had an arguable basis to serve proceedings out of the jurisdiction on HSBCT. The claim was...