Why the client needed our help
Our client, a tax rebate company, was confronted with an urgent application by HMRC to extend two existing Freezing Orders (AFOs) on their bank accounts, with a combined balance of £2.5 million. HMRC argued that the extension was necessary to support an ongoing investigation into suspected VAT evasion and fraudulent tax rebate claims.
HMRC’s case was based on several allegations, including complaints of fraud and a forensic accountant’s investigation to a potential £2.5million VAT fraud.
Faced with this urgent situation, the client turned to us for help in challenging HMRC’s application.
How We Helped
Recognizing the severity of the case and the urgency involved, our experienced tax team- comprising of Pembe Ramadan, ex-HMRC lawyer and Andy Lynch, ex-HMRC Officer teamed up with Max Schofield from Devereux Chambers to deliver a robust defence. We focused on rigorously scrutinizing every aspect of HMRC’s case, applying our extensive experience to identify procedural, evidence and legal irregularities.
The Outcome
The Magistrates Court ruled that HMRC had failed to present reasonable grounds for continuing the freezing orders based on their allegations for VAT fraud or unlawful conduct. As a result, HMRC’s application to extend the Freezing Orders was refused, and our client’s assets have been released.
HMRC quickly confirmed that they will not challenge this ruling.
This victory not only safeguarded our client’s financial assets from being frozen but also forfeited by HMRC as they agreed not to apply for a forfeiture order as a consequence of this decision. It also demonstrated the effectiveness of our team’s strategic approach and legal expertise in challenging HMRC’s application.
