Dealing with a tax dispute and cost orders

Key points

• Any tax adviser or appellant dealing with a dispute must be in a position to properly argue their interpretation of the law.
• It is necessary to collect together all relevant information and documents in order to understand what has happened.
• The disclosure of legal advice must be carefully considered because a disclosure will result in the waiver of legal professional privilege.
• An example of the type of unreasonable behaviour that might lead to a wasted costs order being made against a party’s representative would be conduct that was designed to harass the other side.
• A party who persists with a truly hopeless case may be vulnerable to a costs order being made against them.

When advising on a dispute with HMRC which may ultimately lead to an appeal before the tribunal and higher courts it is necessary to consider from the outset the following key issues:...