HMRC Can Assess $32 Million Sales Tax Evasion Bill, Court Rules (1)

A lower UK court incorrectly disallowed assessments and penalties issued by His Majesty’s Revenue and Customs because of an error in its investigation of an individual’s alleged sales tax evasion, a UK court ruled.

The error didn’t constitute HMRC failing to use its “best judgment” assessing £25 million ($32 million) against Parul Malde and two companies, which then didn’t provide the First-Tier Tribunal justification for setting aside the amount, the Upper-Tier Tribunal said in a ruling Nov. 7 that was published Tuesday.

The case centers on HMRC’s claim that two companies, Sintra SA and Sintra Global, registered in Belize and ...