News In Focus
2 February 2007
Businessman loses tax overpayment claim
A businessman has been left more than £800,000 out of pocket after losing his claim to be refunded a tax overpayment because of the strict time bar rules.
Former Matalan boss Angus Monro had taken a case to the High Court in London after a tax inspector refused to allow his accountant to amend his tax return for 1999-2000 as a result of a decision by the Court of Appeal in another case, the effect of which was that Mr Monro had paid £846,000 too much in tax on his profit on the sale of Matalan shares he has acquired through an option.
However because the decision came a few months after expiry of the 12 months from payment within which a claim for repayment must be made, Vice Chancellor Sir Andrew Morritt said the claim had to be dismissed.
He rejected arguments that the tax had been paid due to mistake of law or unlawful demand, to which a six-year limit would have applied, saying that the tax had been calculated correctly at the time.
He also refused leave to appeal as Mr Monro had no prospect of success.
The judge commented that he had to leave it to others to decide whether the result was appropriate or just.