Unsuitable alternative

Judicial review sought on diverted profit tax assessment

Glencore applied for judicial review after HMRC had assessed it to diverted profit tax on profits arising from the multinational’s oil trading business. The Revenue claimed that profits had been diverted to its parent company in Switzerland. .

The High Court refused the application on the ground that there were other suitable remedies. These were the statutory review under FA 2015 s 101 and a right of appeal under s 102. Glencore appealed. It said these were not suitable options. It had to pay upfront the diverted profits tax of £21m for the review period and then for the further period of an appeal even though the outcome may be that no tax was due.

Lord Justice Sales in the Court of Appeal said judicial review was a remedy of last resort ‘to ensure that the rule of law is...