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Taylor Made Consulting Ltd (TC4018)
The taxpayer company appealed against an information notice issued under FA 2008, Sch 36 para 1 on the ground documents requested were subject to legal professional privilege (LPP).
The business withdrew the appeal shortly before it was due to be heard by the First-tier Tribunal. HMRC subsequently applied for costs of £1,598, saying the taxpayer had acted unreasonably in bringing the appeal and knew its assertion of LPP would be rejected on the basis of the Supreme Court’s decision in R (on the application of Prudential plc) v Special Commissioner [2013] STC 376.
The tribunal accepted the Revenue’s argument. The judge said the taxpayer and its advisers, who were not lawyers, “knew from the outset that claim to legal privilege was groundless and the appeal did not have any reasonable prospect of success”.
The tax department was awarded costs of £1,598.
