Tax scheme Judicial Review fails: More than 150 Ingenious Media investors have failed in their bid to overturn Advanced Payment Notices from HMRC.
The investors launched a human rights challenge to new powers brought in by the Chancellor allowing inspectors to issue upfront payments for what they have deemed to be tax avoidance.
However the High Court challenge, which was based on an abuse of natural justice and an breach of human rights, was rejected Mrs Justice Simler.
Commenting on the Judicial Review, Roberto Moruzzi, Partner at Withers, said: “This is a significant ruling which will have profound consequences for thousands of investors who hoped that the Judicial Review would succeed. They now face settling the APNs, which involve substantial repayments which we know will leave many investors facing financial hardship and even bankruptcy.”
However, Roberto believes that investors do have an option for financial recourse by focusing their attention on the the mis-selling of the tax schemes by their professional advisers. He explained: “It is our belief that many of the investors, particularly the many professional sportsmen and women who signed up for these schemes, have a clear case to make against their professional indemnity policies of their accountants or IFAs. To enter into a scheme of this complexity, the FCA requires the investor to self certify as a “Sophisticated Investor” – a top level categorisation of financial understanding. In our opinion, the advisers who encouraged their clients to sign these self certifications were clearly negligent.”
The Withers Tax Case is therefore a Group Action against the advisers for the mis-selling of tax schemes. To find out more or check your eligibility for the group please click here.