Tax Services

Resolving tax disputes through litigationSometimes, disputes with HMRC can be resolved through the normal round of meetings and ex-changes of correspondence. At other times, however, HMRC may take an apparently fixed positionfrom which it is clear that it is reluctant to move. The process of litigation can bring about a stepchange.

From the outset it is likely that additional resource will be brought to the table. This can in itself leadto a change of position. It may also mean that HMRC will balance its position against the risks of lossto the individual taxpayer, the consequences of this for the wider taxpayer population, and the costand time resources that litigation will take. Even if a taxpayer is uncertain whether to take a matter allthe way through to judgment, in some cases commencing the process can produce positive results.

Litigation can be both a minefield and a powerful tool to unlock a dispute with HMRC. EY’slitigation team has the experience and credentials to help you navigate the process to resolution ofyour dispute.

Whether and when to apply for a Closure Notice

Whether alternative means of dispute resolution — such as mediation — should be used in lieu of or in tandem with litigation

Alternative Dispute Resolution (ADR) is enshrined in the First-tier Tribunal and Upper Tribunal Rules and is now a permanent feature of the tax dispute resolution landscape

Whether an appeal should be made through the tribunal process and the likely prospects of success

The various means of resolving a dispute must be assessed to determine the most efficient, time effective and economical route

Whether to appoint Counsel and who is most appropriate for the job

It is important to be able to identify the right Counsel for the problem and work together to identify all the key facts and present technical arguments in the most persuasive manner

Whether (and at what stage) settlement discussions should be (re)commenced with HMRC

The vast majority of cases settle prior to formal resolution through litigation and therefore it is important to adopt the right strategy throughout to achieve the best outcome

Whether further appeal ought to be made following a Tribunal decision

Further information: our Tax Litigation Contacts

Mitchell Moss

Mitchell has over 17 years of experience in Indirect Tax Litigation. He was called to the Bar in 1992 and re-qualified as a solicitor whilst working for one of the leading tax litigation firms. He has appeared as an advocate before the Tribunal and represented clients at all levels of courts in the UK and Europe, and has successfully represented a number of clients in the ADR process. Mitchell combines strong technical analysis with a creative approach to the interpretation and application of UK and EU law. He also understands the strategy necessary for successful litigation.

Email: mmoss@uk.ey.com Tel: + 44 207 951 2279

Yvette Adams

Yvette has a wealth of experience litigating in the First- tier Tribunal, the Upper Tribunal and Court of Justice of the European Union, complemented by formal legal training in the resolution of tax disputes through the litigation and ADR processes at a Masters level. Yvette specialises in the resolution of direct tax disputes and has assisted numerous clients to navigate the litigation process across a broad spectrum of issues ranging from discovery assessments to tax planning.

Email: yadams@uk.ey.com Tel: + 44 207 951 2601

There is no need to wait for HMRC to decide that it hascompleted its enquiries. If made at the right time, anapplication for a Closure Notice may encourage HMRCto seek to resolve the dispute by negotiation and at anearlier point in time

What does the litigation process involve?Although an important part of the process, there is more to litigation than ensuringtribunal filing deadlines are met, the most appropriate case management directionssought, and the evidence prepared in order to prove a case; although we can help youwith that. Litigation requires careful management because there are important decisionsto be taken at almost every juncture, such as:

Upon receiving an unfavourable judgment a decisionmust be made on whether to take it any further. Botha fresh set of eyes and a fresh approach to an onwardappeal can breathe new life into a case

How EY can helpThe EY team boasts a diverse group not only of lawyers, but also former HMRC officials (including the former Head of HMRC’sDispute Resolution Unit) and CEDR accredited mediators. The team has access to EY’s 28,000 plus tax technical experts spanninga wide range of taxation disciplines across more than 120 countries, enabling a holistic and efficient approach to disputeresolution. We’ve worked with leading tax Counsel across all key Chambers and can identify the right Counsel for the problem,helping you to ensure that the best team is working on resolution of your dispute.

EY’s litigation team works closely with the Tax Controversy and Risk Management group, which specialises in contentious taxmatters in both the prevention and resolution of disputes with HMRC. Our approach is to strive for settlement of our cases out-side the litigation process wherever possible, and a significant majority of our cases settle successfully pre-litigation.

When litigation is determined to be the most effective way to resolve a dispute, the well-established EY team can support youthrough litigation, and has assisted clients in the resolution of cases through the First-tier Tribunal, Upper Tribunal, Court of Ap-peal, Supreme Court and Court of Justice of the European Union.

We can guide you from informal exchanges with HMRC through to formal litigation, saving unnecessary duplication of costs. Asan accounting firm we have wide tax technical expertise, including experience advising upon the underlying tax transactions andissues or those similar across a wide client base.

We have experience of successfully bringing clients together where there are common issues of fact or law so that the costs oflitigation are shared and the strongest case put forward, and are able to offer transparent and flexible fee arrangements, includ-ing caps and contingent fees.

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