HMRC litigation success in avoidance cases continues

HMRC won 22 of the 26 cases involving tax avoidance it took to court in 2016-17 according to government figures. It lost three and one resulted in a mixed outcome.

Heather Self partner at Pinsent Masons said: ‘Anyone seeking to implement a complex tax avoidance scheme would have to be a confirmed optimist to assume they would win if the case is ultimately litigated.

‘HMRC can also now rely on the general anti-abuse rule which applies to transactions from 2013. The first ruling of the GAAR panel was released recently and was unanimously in favour of HMRC.’

She added that all the direct tax cases related to facts dating from 2003 to 2009 with most at least ten years old before they reached the courts. The only VAT case dated to 1997 but the reason for the delay was caused by a referral to...