Latest Development in Inverclyde
Previously the FTT held that if a limited liability partnership (LLP) is found to not be trading with a view to a profit, it is in effect a corporate entity and therefore should have filed a company tax return. Therefore, it found that an enquiry into the partnership return filed by such an LLP was void and the accounting period was closed without an enquiry. HMRC appealed this finding.
The Government subsequently introduced Clause 101 of the Finance Bill 2020 to retrospectively reverse this decision.
In a decision issued on 27 May 2020, the Upper Tribunal has now also upheld HMRC’s appeal. In that decision, it confirmed that such enquiries would not rendered a nullity by a finding during that enquiry that the incorrect return had been filed.
The tribunal therefore re-made the decision, holding that the closure notices were validly issued and that there is no basis in law for striking out the appeals. The tribunal’s decision in Inverclyde has therefore now been both negated y legislation and overturned on appeal.
The DBKAG & K (CJEU) decision: an opportunity for investment funds?
On 17 June 2021, the European Court decided the joint cases K (C-58/20) and DBKAG (C-59/20) regarding whether the supply of certain services constituted the “management of special investment funds”, benefiting from the VAT exemption enshrined in Article 135(1)(g) of Council Directive 2006/112/EC.
Raising the bar: UK Supreme Court clarifies the requirements for HMRC to issue Follower Notices
On 2 July 2021, the Supreme Court delivered its judgment in R (on the application of Haworth) v HMRC  UKSC 25, finding unanimously in favour of the taxpayer and upholding the Court of Appeal’s decision to quash the follower notice issued to him.
The Danish Supreme Court decides the Fidelity case
The Fidelity case concerned claims brough by three undertakings for collective investment in transferable securities (UCITS) for the repayment of Danish withholding tax on dividends received from companies resident in Denmark between 2000 and 2009. The Supreme Court rejected the claims on the grounds that the Fidelity UCITS did not fulfil the conditions for the exemption provided by Danish law.
A yellow card for footballers and their agents……let’s bring in another match official
There has been long running tension between HMRC and the way that footballers and their agents are remunerated. As the Professional Footballers’ Association wade into the debate, Helen McGhee discusses the problems arising from agents’ fees and image rights.