The Court of Appeal in Northern Ireland overturned a decision of the First-Tier Tax Tribunal and the High Court regarding how HMRC must plead its fraud cases. The taxpayer had lost its appeal in the Tax Tribunal after an allegation that it knew or should have known of a connection to fraud in its supply chain. The Tribunal had accepted that the arguments put forward by CTM in defence were correct, but found in favour of HMRC on a case that was not pleaded. The High Court Judge agreed with the Tribunal but the Court of Appeal sided with our client. This shows the potential benefit in pursuing appeals, but also the need to seek the right legal advice and instruct the right tax barristers.
As well as allowing Ulster Metal’s appeal, the Court ordered HMRC to pay its costs in the Tax Tribunal, the Upper Tribunal and the Court of Appeal. A copy of the full judgment can be found here: http://www.bailii.org/nie/cases/NICA/2017/26.html