As broken by Alex Thomson of Channel 4 News yesterday, HMRC have been granted leave to appeal against the majority decision in the EBT tax case known to one and all now as the “Big Tax Case”( © RangersTaxCase.com.)
After a flurry of anger on Twitter and elsewhere about this “leak” to Mr Thomson, and even more misplaced anger by people who thought this meant the appeal itself had been decided, Mr Thomson published a blog post on the subject. You can find it here.
As far as leave to appeal being granted was concerned, no one I spoke to with knowledge of the appeal system thought that the application for leave would be refused. An appeal can only be taken forward on a question of law.
What, some have cried, was the question of law in this case?
The answer to that question is very simple. (Though the answer to the legal question is not).
Put simply the majority interpreted the legislation and case law to allow them to look at the form of what was done whilst the minority judge applied the same law and reached the conclusion that the substance of what was done was more important than the form.
Therefore there is a clear distinction about how the law should be applied.
That is, undoubtedly, a “question of law”. Continue reading →