Businessman loses tax overpayment claim

Legal time bar halts attempt to get back £846,000 from HM Revenue and Customs

News, 2 February 2007

---

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.

Current News 05.09.08 PM changes tack on tax-raising powers Allowing Scottish Parliament more accountability would strengthen the UK, says Brown 05.09.08 Summary justice reform success, claims Angiolini Lord Advocate's letter says figures to date indicate new system working 04.09.08 Advocates in Aberdeen launch new website Internet presence aimed at increasing awareness of Society of Advocates in the north east 04.09.08 Legal profession, local income tax top bill list Scottish Government unveils legislative programme for 2008-09 04.09.08 Step up to associate for Fife lawyer Sue Arrowsmith promoted at Murray Donald Drummond Cook LLP 04.09.08 Prosecution inspectorate publishes annual report Review pending of new fiscal fine system 03.09.08 Society welcomes Legal Profession Bill Hopes that bill will provide for alternative business structures for law firms 03.09.08 'No proof that plaques harmful': insurance lawyers Industry's legal team argue against proposed law extending compensation 03.09.08 Commissioner orders release of tender information Council not justified in claim that Street Outreach documents must be kept secret 02.09.08 Stamp duty break for lower value properties 12-month threshold of £175,000 among government moves to buck up housing market 01.09.08 Government publishes sentencing proposals Judges and sheriffs would need to reveal reasons for departing from guidelines 01.09.08 Revenue reminds of new tax return date 31 October now deadline for paper returns 01.09.08 Blackadders' review results in 44 job losses Two branches also close as firm consolidates to combat property market troubles 01.09.08 Area procurator fiscal appointment for Central Michelle Macleod takes on new role 01.09.08 Partner catch for Ledingham Chalmers Neil Anderson appointed, while Marysia Lewis takes up floating sheriff appointment