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Indirect taxes are collected by HM Revenue & Customs who are also responsible for giving rulings. They have wide enforcement powers and a range of civil and criminal sanctions. Some scope remains for negotiation and settlement with HMRC. Over recent years, however, the environment has become more confrontational and litigious. HMRC are adopting a hard line towards what they regard as unacceptable tax planning. Each year new anti-avoidance rules and legal principles emerge. In 2004 a disclosure regime was introduced, and in 2006 the European Court gave judgement in the Halifax Cases. These developments have had a major impact on tax planning.
Most litigation is disposed of in the First-tier tax Tribunal or the Upper Tribunal . For the litigant the key to success lies in proper preparation, establishing the primary facts and presenting the best legal arguments. This is likely to require the skills of an experienced advocate. Appeal to the higher courts (including references to the ECJ) may only be made on a point of law. For all businesses, and many other bodies affected by indirect taxation, the need for professional help from specialist counsel has never been greater. |
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