HomeCase studiesSMEs, directors & shareholdersDirector servicesDefending the former chairman of a premiership football club against a tax avoidance scheme related claim

Why the client needed our help

Our client, a high profile director and the former chairman of a premiership football club, was facing a claim by a liquidator for his company’s alleged entry into a tax avoidance scheme while in liquidation. The liquidator was claiming for significant losses caused by the scheme. Our client did not believe that he should be liable and sought our assistance defending himself.

How we helped

We used our considerable experience of tax avoidance schemes and knowledge of recent changes in the government’s legislation relating to these schemes to determine the best route for our client. We advised them to seek a settlement in light of the likely cost of litigation proceedings and such a proposal was put to the liquidator. The liquidator declined the proposal which turned our focus to defending the client and carrying out a detailed review of the liquidator’s claim, concluding that we could actually convince the court to dismiss it through a strike out application.

The outcome

Our strike out application was successful and the liquidator was ordered to pay our client’s legal costs for the entire proceedings, including those for the pre-action correspondence. Needless to say, our client was delighted.

Key contacts

Stephen Downie

Stephen Downie

Partner

Shevy Narendra

Shevy Narendra

Senior Associate

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