Failed Tax Avoidance Schemes - The Latest Update on Claims Against Directors & Shareholders

Introduction

Failed tax avoidance schemes are the reason for an increasing number of corporate insolvencies.

In such cases the officeholder will need to consider whether there are viable claims against the directors and shareholders, for instance for misfeasance, breach of fiduciary duty, unlawful distributions, transactions defrauding creditors, etc.

This requires an understanding of how the relevant legal principles concerning such claims have been applied in the context of failed tax avoidance schemes in recent reported cases.

There has been significant volume of reported cases arising from failed tax avoidance scheme.

While such claims succeeded in two relatively early cases (PV Solar and Toone v Ross), they were wholly or largely unsuccessful in three more recent cases.

This new virtual classroom seminar analyses the three recent cases, with a view to understanding the reasons why the claims failed and how other claims arising from failed tax schemes might succeed in future.

The session is principally aimed at insolvency practitioners and solicitors who specialise in insolvency litigation.

What You Will Learn

This live and interactive session will cover the following:

• Chalcot Training Ltd v Ralph
• ‘E Shares’ disguised remuneration scheme
• Characterisation of payments into scheme - authorised remuneration or unauthorised distributions?
• Toone v Ross not followed
• Re Marylebone Warwick Balfour Management Ltd, Hunt v Balfour-Lynn & Ors
• Share-based tax mitigation scheme
• Scheme used despite ongoing HMRC challenge in litigation
• Reasonable reliance on professional advice
• Asertis Ltd v Heathcote & Anor
  • Qubic gold bullion/EBT tax avoidance scheme
  • Importance of professional advice
  • Creditors’ interests duty
  • Potential remedies

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.