SKG (London) Ltd vs HMRC

Hi,

I am a director at SKG London Ltd, and we currently have an ongoing issue with a court case over fines for CIS payments.

There is another similar thread to be found here, this includes further details.

http://www.accountingweb.co.uk/anyanswers/skg-london-ltd-v-hmrc

Our accountant is acting on our behalf but i would be pleased to have any input from you guys to help us understand the exact process. Earlier this week we have received a letter from Tribunals Service indicating that they are requesting the attorney general appoint council at the tribunal.

The attorney general is unable to agree to this request. She is of the view that before she is able to appoint advocate we (SKG) are given the opportunity to obtaining our own council, which we are advised to do, given the legal nature of the issue in question.

We have been asked that given the specific nature of the case (to the building industry) and the affect the outcome would have on that industry. Industry bodies should be made aware of the case, as one of those may be interested in intervening.

The remainder of the letter explains the process if we are / or are not able to obtain council.

It obviously sounds as if the process of continuing with the case would be an expensive one, but we wondered the benefits to any company wishing to act on our behalf. We assume that as a test case the outcome would have some relevance to the previous/ongoing and future CIS issues. Would this case be an important case?, as we are worried about the possibility of an ongoing legal case and wonder what benefit it will have to our company.

As you can tell im not an accountant but felt this the best place to ask advice.

Thanks in advance for any help you may be able to offer.

 

Comments
Steve Knowles's picture

New Ground

Steve Knowles | | Permalink

This case seems to be very important.

This is a paragraph from an email I received a few days ago.

"As neither side appointed Counsel for the hearing, the Tribunal has not yet had the benefit of detailed legal submissions and has adjourned its final decision until further legal arguments have been considered – this should be sometime between March and July 2010.  HMRC has been quite devious by taking a case where the penalties at stake were a mere £2,800 – whereas under the new scheme in theory the penalties can run to over £70,000.  However, watch this space, as it seems that HMRC could be in for a rough ride and the entire new late filing penalty regime could suddenly be swept away."

In this context you should seek help from the industry associations.  I am told, though I have no personal experience, that in important test cases HMRC fund both sides so that the point can be properly examined.

If you are interested in who sent out the email,  they are consider experts in these areas, email me at taxchampion@taxchampion.co.uk

jimeth's picture

Important Case

jimeth | | Permalink

I agree that this is a very important test case.  Definitely worth contacting industry bodies to gain support.

I definitely

geoffwolf | | Permalink

think you should request confirmation from HMRC that they expect to pay bnoyh sides costs. Confirmation would enable you to employ leading counsel to represent your side of the case.

Happy to assist

Siân Woods | | Permalink

Steve's previous post was an extract from one of our emails.  We would be happy to assist you so please call 0845 66 00 35 to discuss how we can help.

Accountax

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