News
Supreme Court grants HMRC leave to appeal in unlawful dividends case
Posted on: 22 January 2010
The Supreme Court has granted HMRC leave to appeal against the Court of Appeal ruling in the HMRC v Michael Holland case involving the payment of unlawful dividends.
HMRC is trying to recover a corporation tax shortfall of £144,000 from Mr Holland. HMRC argues that as a director of a company's sole corporate director, Mr Holland was a de facto director of the company, which continued to pay dividends after being advised that it should account for corporation tax at the main rate instead of the small companies' rate.
However, the Court of Appeal judges unanimously decided that there was no authority for the proposition that an individual should be regarded as a de facto director of a company simply by acting as a director of that company's sole corporate director.
The Supreme Court is due to hear the case on 21 July 2010.
