R (oao Rouse) v HMRC

In R (oao Rouse) v HMRC (Upper Tribunal – 8 August) the applicant (R) had submitted returns for 2007/08 and 2008/09 returns claiming that he had incurred substantial losses in 2009 and 2010 and seeking to set this against his income tax liability for 2007/08. HMRC subsequently began an enquiry into R’s 2008/09 return. It also began county court proceedings to collect unpaid tax for 2007/08. However these proceedings were stayed pending the decision in HMRC v Cotter [2012] STC 745. In 2011 R submitted a VAT return claiming a substantial repayment. HMRC accepted that this repayment was due but sought to set it against R’s income tax liability under FA 2008 s 130. R applied for judicial review. The Upper Tribunal granted his application. Warren J observed that in HMRC v Cotter Arden LJ had held that only an enquiry under...