The LTAG team has been working closely with Counsel, HMRC and the Courts to agree the procedure by which the LTAG claim will be heard within the next few months. HMRC has already agreed the protocol and once all diaries have been confirmed we will be able to set the LTAG hearing date. We anticipate this will be within the next two weeks.
In the meantime, we have had extensive discussion with Counsel and our Solicitors to take into consideration how the latest tax related decisions may impact the LTAG claim.
LTAG members will shortly be receiving a strictly confidential briefing.
Once a hearing date is set we will post that date on this web site.
The LTAG Judicial Review of HMRC’s power of recovery was adjourned, from January 2017, pending the Supreme Court hearing and judgement of the De Silva claim. Now the judgement on De Silva has been delivered the LTAG JR hearing can be re-scheduled.
The De Silva judgement largely dealt with whether, or not, HMRC used the correct enquiry mechanism for a claim that involved multiple years. That judgement concluded that HMRC did use the correct mechanism.
LTAG is concerned with the broader subject of how should HMRC recover repayments made in the past which it has decided should be returned. Broadly, these are called powers of recovery.
Naturally, many LTAG members and potential claimants have been asking us what is the impact of the De Silva judgement on HMRC’s powers of recovery. We do have strong guidance from Counsel on the impact and are seeking a range of further detailed opinions. We are due to have these shortly.
At this point, given the sensitivity of case management, we cannot provide further comment.
Once we have cleared the way forward with HMRC on how the LTAG case will be heard we will be able to comment to our members and to potential claimants who would like to join the LTAG claim.
This morning the Supreme Court delivered a decision that dismissed the De Silva appeal.
De Silva had appealed that HMRC had used an incorrect enquiry process to invalidate his claim and that his claim should stand. The Supreme Court ruled that HMRC had, in his specific circumstances, acted lawfully.
The Supreme Court also ruled that the Cotter case gives no support to the taxpayers in this appeal, De Silva and those stood behind De Silva.
The LTAG team will be reviewing the judgement with legal counsel in great detail to determine its application to the range of fact patterns LTAG claimants have. We would expect to be in a position to provide guidance to LTAG members in two weeks.