All,
The latest in this saga is that in May 2015 the Court of Appeal has unanimously ruled in favour of Littlewoods.
The latest Littlewoods compound interest claim hearing was on 24th - 27th and 30th March 2015 with the ruling issued on 21 May 2015.
The full Court of Appeal 21 May 2015 ruling on Littlewoods compound interest is on Bailii.orgQuote:Conclusion and disposition
209.We are not persuaded that Henderson J fell into any error on any of the issues which we have been asked to decide. For all the above reasons, therefore, we dismiss HMRC's appeal and Littlewoods' cross-appeal.
The decision of the Court of Appeal confirms the decision of the High court in 2014 in favour of Littlewoods.
However it seems that HMRC will seek leave to appeal the Court of Appeals decision to award compound interest to Littlewoods up to the Supreme Court.
As the compound interest for Littlewoods amounts to around £1.2 BILLION HMRC respond is unsurprising. HMRC are quick to accuse and slow to apologise.
Interestingly HMRC has made provision for over £5 Billion it expects to pay out for litigation it expects to lose in the next five years.
Although members of the public might be tempted to think this is excessive it is actually demonstrates quite powerfully two things I think.
Firstly that the law in the UK is extremely complex and vague on many many important and basic issues that affect taxpayers.
Secondly, as I have long said HMRC is an organisation "unfit for purpose".
The long standing culture within HMRC largely to blame for why the Government is now quite possibly going to have to fork out the £1.2 Billion Littlewoods claim together with claims held over and sitting behind this ruling as well.
HMRC often try and argue an aspect of the law in their favour which it is far from clear they are right on.
I say, well done to Barclays for having the guts and resources to take on the bully boys (and girls) at HMRC that I am sure most if not all tax professionals have come across within HMRC fairly regularly.
HMRC spend a lot of their time spouting rules and guidance that is flawed.
When HMRC get it wrong they ABSOLUTELY need to be put in their places and made to pay for their incompetence. MAYBE then HMRC will start treating many businesses and individuals much more fairly and reasonably.
I sincerely hope that Barclays win at the Supreme Court and that the judge heavily criticises HMRC for its dragging this issue out for such a long time.
Maybe then Government will finally realise that tax law need to be clear and also that HMRC is an outdated and unfit for purpose organisation in a modern world.
HMRC have reported said that in their opinion the Court of Appeal ruling and effectively the previous rulings of the Courts in favour of Barclays is "
Quote:at odds with how parliament intended the [VAT] law to work and will now seek leave to appeal to the Supreme Court
".
I think however HMRC need to but put in a position where they have to cease the complacent approach to tax law they often follow and they think that they are beyond or above the law and can make it up as they go along.
In reality the fact is that HMRC are the ones that are going to cost the exchequer and taxpayers generally the £1.2 billion plus in compound interest (plus no doubt millions and millions in legal fees) as it is HMRC that incorrectly enforced VAT in the first place over a couple of decades!
Shame on you HMRC on both counts. It is about time you apologised to Parliament, Littlewoods, other claimants and the public generally and get your organisation fit for purpose going forward (or get replaced by an organisation that can).
Simple example tax codes any better after RTI? Yeah right, just as messed up as before.
Another example I sat with a taxpayer yesterday twice trying to speak to HMRC to correct a stupid tax coding error.
The first call listening to music on hold waiting to get through to took 28 minutes. the agent help line would not speak to me as it was someone I was helping who is not a client.
The second call took 33 minutes of listening to on hold music to get though to a person to correct HMRC's stupid coding error with under RTR should never have had to happen (or in this case even before RTI came in.
Disgrace.
TG
Edited by user 28 May 2015 10:07:11(UTC)
| Reason: typo
