The Pre-Budget Report in 2009 stated that HM Revenue and Customs (HMRC) should apply a more consistent approach to the collection of "debts" in litigation. HMRC must repay overpaid tax where there is a judgement in favour of the taxpayer (even though the judgement is subject to an appeal) however where HMRC have a judgement in their favour they only inconsistently collect the tax before the appeal is heard.
Therefore HMRC has decided to collect all "owed" taxes even if the judgement is subject to appeal. This change will take effect in relation to all decisions made by the Tribunals or Courts from 1 April 2010. HMRC however, will not enforce payment in cases where an agreement not to do so has been made with the appellant before 9 December 2009 or in cases where to enforce payment would be likely to drive the taxpayer into liquidation or bankruptcy (though the appellant will need to apply to HMRC to have the collection of the tax held over until the appeal).
Please note that when there is a judgement in favour of a taxpayer, HMRC must repay the overpaid tax even if that judgement is subject to appeal.
For more Latest News please visit www.internationaltradesolutions.co.uk/news or alternatively visit our free Knowledge Space for access to ITS White Papers on customs law.
"ITS have highlighted significant cost savingopportunities."
CW Winter, Financial Controller Special Metals Wiggin Ltd.
"Rob explains clearly, and gets on with people. He isvery constructive and pragmatic. His loyalty to thereds is admirable, if misguided. One of my favouriteScousers!"
Nick Mallett, Partner DHM Stallard
"ITSs broad knowledge of Customs has proved invaluable"
D. Widdowson, Director of Financial Accounting Croda Chemicals Europe Ltd
"Rob has provided customs advice on many occasions,always demonstrating deep knowledge of his subject tohelp the business mitigate its duty liabilities."
Stuart Reid, Financial Director Komatsu UK
"ITSs experience and knowledge has ensured projectswere completed with a favorable result."
K R Maddison, Financial Controller Bard Limited
"I have worked with Rob on sticky HMRC issues. As wellas direct assistance, Rob has provided excellenttraining for operational staff. I recommend ITS."
G. Mitchell, Senior Operations Manager EPSON
"ITS helped us to reach a successful conclusion when HMCustoms tried to reject our proposed changes by usingtechnicalities."
D. Suddens, Finance Manager Blanc Aero Industries UK Ltd
