London Fluid System Technologies Ltd & Ors v His Majesty's Commissioners for Revenue and Customs
[2023] EWHC 2206 (Admin)
Sensor Solutions Limited, R (on the application of) v The Commissioners for HMRC
13 May 2024
[2024] EWHC 1119 (Admin)
High Court
A company tried to get money back from the government's DRRS scheme but failed. The court decided the company hadn't properly disclosed information about loans, and that the government's internal guidelines didn't cause any unfairness.
Key Facts
- •Sensor Solutions Ltd (Sensor) challenged HMRC's decision not to repay sums under the Disguised Remuneration Repayment Scheme (DRRS).
- •The challenge centered on whether Sensor made reasonable disclosure of loans, as required by the Finance Act 2020.
- •HMRC's decision was based on an assessment of Sensor's tax returns, excluding AAG forms related to a tax avoidance scheme.
- •Sensor sought to amend its claim, arguing unfairness due to HMRC's reliance on unpublished internal guidance.
- •Sensor conceded that AAG forms were not part of its tax returns as defined in the Act.
Legal Principles
Principles for permitting amendments in judicial review proceedings.
CNM Estates (Tolworth Tower) Ltd v Carvill-Biggs, [2023] EWCA Civ. 480
Duty of fairness in the exercise of statutory powers.
Common law
Interpretation of statutory provisions.
Finance Act 2020, sections 20(4), (5), (8)
Unlawfulness of relying on unpublished policy inconsistent with published policy without opportunity for submissions.
Common law, Timson, Lumba, Lupepe
Section 31(2A) of the Senior Courts Act 1981: refusal of relief if the outcome would not have been substantially different.
Senior Courts Act 1981, section 31(2A)
Duty of candour
Common law
Outcomes
Judicial review refused; claim dismissed.
The claim was unarguable. Sensor failed to demonstrate reasonable disclosure under the Act, even considering the AAG forms. There was no unfairness in HMRC's process or reliance on internal guidance.
Permission to amend refused.
The proposed amendments had no real prospect of success.
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