The first judicial review testing the legality of APN and PPN legislation is due before the High Court today.
The first judicial review 'out of the gates' relates to tax schemes promoted by Ingenious Media. Ingenious investors are currently locked in battle with HMRC regarding the validity of their claims and it is understood that they are due back in court in the Autumn. The Ingenious tax schemes have also attracted a great deal of negative attention in the media and it has been reported in the press over the past few days that investors are now taking legal action against Ingenious.
It is against this backdrop that the High Court must decide if the new legislation requiring advanced payment of the disputed tax applies and, if it does, whether or not it is constitutional. There is little doubt that the new Accerlated Payment Notice (APN) and Partner Payment Notice (PPN) legislation is controversial, especially as it specifically excludes redress through the normal courts. In choosing Ingenious as its first target, have HMRC sought to strategically place the courts in a difficult position?
Notwithstanding how abhorrent the legislation, it will be a brave High Court Judge who will find in favour of taxpayers as it is highly likely that the decision will be spread across the front pages of the broadsheets and tabloids alike!
It is a shame that HMRC did not seek a less controversial case as this would have allowed the legislation to be tested without other underlying issues also being taken into account.
However, it is important to note that a number of other judicial reviews raise separate points regarding failing to meet the conditions in the primary legislation. These are distinct and separate from the issues being raised in the Ingenious judicial review.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
