Key points
- Any decision to litigate should be taken as unemotionally and as ‘commercially’ as possible.
- Stay in the process until HMRC puts in its statement of case which shows how strong its position really is.
- Tax cases will be allocated to one of four tracks and an application should be made should this be considered to be incorrect.
- Mediation can be surprisingly successful and the FTT encourages it.
- Litigation is almost always public.
- An appeal to the Upper Tribunal can only be made on a point of law.
The following is a familiar scenario for many tax practitioners. The adviser acts for a client during an enquiry and has been unable to persuade HMRC of the (hopefully) excellence of their arguments on the client’s behalf. The HMRC officer has now served a closure notice on the client. A review has been offered and the client duly accepts but...