Horizon Contracts Limited (in liquidation) & Ors v The Commissioners for HMRC
[2024] UKFTT 348 (TC)
Newcastle United Football Company Ltd v The Commissioners for HMRC
16 October 2023
[2024] UKFTT 223 (TC)
First-tier Tribunal
A football club is in a big tax dispute with the government. The government wanted to see some of the club's documents, and the judge said they could, because it's important for a fair trial. The judge didn't make extra rules yet though, wanting both sides to talk about what's next first.
Key Facts
- •HMRC applied for specific disclosure of documents from Newcastle United Football Company Ltd. (Appellant) related to a VAT appeal.
- •The appeal concerns VAT assessments totaling £2,034,793 for periods 4/11 to 12/16.
- •The dispute centers on whether payments to football players' agents were correctly claimed as input VAT.
- •Prior criminal investigations involving search warrants had occurred, resulting in some documents being retained by HMRC.
- •The Appellant argued the disclosure request was overly broad and amounted to a 'fishing expedition'.
- •Approximately 8,000 documents obtained via warrants were deemed relevant to civil proceedings, with 6,532 relating to the VAT appeal.
- •Witness evidence was provided by both parties.
- •The Appellant challenged the timeliness of HMRC's assessments and the treatment of agent's fees.
- •Ongoing proceedings related to the return of documents seized during the criminal investigation under section 59 Criminal Justice and Police Act 2001 existed.
Legal Principles
The Tribunal may regulate its own procedure and give directions relating to the conduct or disposal of proceedings.
First-tier Tribunal (Tax Chamber) Rules 2009, Rule 5
The Tribunal may require a person to answer questions or produce documents in their possession or control which relate to any issue in the proceedings.
First-tier Tribunal (Tax Chamber) Rules 2009, Rule 16
Within 42 days after the respondent's statement of case, each party must provide a list of documents they intend to rely upon.
First-tier Tribunal (Tax Chamber) Rules 2009, Rule 27
The overriding objective of the Tribunal Rules is to enable the Tribunal to deal with cases fairly and justly.
First-tier Tribunal (Tax Chamber) Rules 2009, Rule 2
In high-value, complex disputes, parties should disclose relevant documents unless there's a good reason not to. Relevance is assessed by reference to the issues and parties' positions.
McCabe v HMRC [2020] UKUT 266
Outcomes
HMRC's application for specific disclosure was allowed.
The Tribunal found the sought material likely relevant to the VAT appeal, considering the complexity, value, and the Appellant's position. The Tribunal found the request for disclosure was not unduly burdensome and was necessary for a just determination.
HMRC's application for further case management directions was refused.
The Tribunal deemed it inappropriate to make further directions without further representations from the parties.
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