SpC 737 (2009) Mercury Tax Group v HMRC

Tax Avoidance Disclosure. HMRC sought £5,000 penalty - Taxpayer won.

Case Summary:

HMRC argued that Mercury had not disclosed a tax avoidance scheme under the Disclosure of Tax Avoidance Scheme regulations and claimed a penalty. Mercury won on two counts. First the detail of the scheme was such that it did not fall within the disclosure rules. Secondly, Mercury had obtained Tax Counsel’s opinion that disclosure was not necessary and so even if that opinion had been wrong (which it was not) Mercury could not be liable for a penalty.