Gaines-Cooper heads to the Supreme Court

Seychelles-based entrepreneur Robert Gaines-Cooper is taking his long-running residence case against HMRC to the Supreme Court.

In February the Court of Appeal turned down Gaines-Coopers’ application for judicial review of HMRC’s decision that he was UK resident. While he maintained that HMRC had ignored its own guidance set out in the IR20 booklet that Gaines-Cooper and his advisers followed when he moved to the Seychelles in the 1970s.

The Special Commissioners and the Court of Appeal have held to the view that Gaines-Cooper continued to be resident in the UK by maintaining a substantial residence that housed his family and art, car and gun collections.

The appeal judges expressed “some sympathy” for Gaines-Cooper in February, but still refused his request for a judicial review.

But  the tax exile and his advisers are sticking to their guns and are targeting the uncertainties raised by HMRC’s decision to go after him on the basis of a new and different set of residence criteria to those set out in IR20.

“This case is important because further judicial guidance is needed before taxpayers can have anything like the clarity about their tax affairs to which they are entitled,” commented Peter Vaines, head of tax Squire, Sanders & Dempsey, who is representing Gaines-Cooper.

If the case ultimate goes against him, Gaines-Cooper could be liable for taxes dating back to 1993 amounting to around £30m. Having made public his intention to go to the Supreme Court, he has had no word yet when the case is likely to be heard.

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