Tax litigation
More aggressive action by HMRC in light of falling tax revenues, coupled with regulatory change, means that tax litigation is a likely growth area over the next few years, a fact that has not escaped the attention of a number of large firms. The market is currently dominated by litigation boutiques, but this state of affairs could be subject to change as large firms commit increasing resources to a dynamic and expanding area of practice.
With unrivalled expertise in Group Litigation Orders (GLOs), the ‘excellent’ team at Dorsey & Whitney provides ‘a high level of service and responsiveness’. The practice is representing Marks & Spencer in its claim to set off losses of EU subsidiaries against the parent company’s UK profits - a case with far-reaching implications that has generated over 300 similar claims. It has also attracted work from the likes of Cadbury Schweppes, PepsiCo, Prudential and BMW. The ‘first-class’ Simon Whitehead and Paul Farmer, who heads up the EU practice, are recommended.
Clients praise the ‘professional and proactive’ team at McGrigors LLP for its ‘excellent service’ and ‘clear advice’. Advising on all aspects of contentious tax, the firm acted in the Court of Appeal case HMRC v Weald Leasing, a significant defeat for HMRC which has now been referred to the ECJ. Expansion in 2008 saw David Anderson made partner, as well as the arrival of a number of new associates including Clara Boyd and James Duncan. Recommended individuals include ‘good team player’ Jason Collins, the ‘creative and energetic’ Rupert Shiers and the ‘approachable and responsive’ James Bullock.
Berwin Leighton Paisner LLP continues to expand aggressively in the tax arena and fields a strong contentious team. It is advising Aegis Group and a number of other major corporations in significant corporation tax claims as well as acting for a major international hedge fund, following takeover by an international financial institution, in relation to tax issues arising in three jurisdictions. Liesl Fichardt is 'incredibly hardworking, bright, and knows exactly how to deliver the commercial results clients want', and Jonathan Levy is also recommended.
DLA Piper UK LLP has also identified contentious tax work as a growth area and continues to expand its team with two new hires from HMRC. It acted for the claimant in Halcyon Films LLP v Revenue & Customs Commissioners as well as advising RCI Europe on potential double taxation issues, now the subject of a referral to the ECJ. Simon Airey is well respected by clients and peers alike, although Hartley Foster – also highly regarded – has recently moved to Olswang.
With its strong background in commercial litigation, Herbert Smith LLP’s contentious tax team provides clients with a ‘very responsive service’ and has ‘great technical skill’. It successfully represented the Bank of Ireland before the Special Commissioners on a large VAT matter, and acted for the British Aggregates Association in a landmark European Court case concerning the legality of the UK’s Aggregates Levy under EU state aid law. Heather Gething is highly respected in the market, and Neil Warriner has particular expertise in indirect tax matters.
Linklaters LLP is a market leader in the field of corporate tax, and its contentious tax team handles some of the largest litigation in this area for the firm’s blue-chip corporate client base. It continues to act for Vodafone in a tax matter worth billions of pounds which will be heard by the Court of Appeal in 2009. With a commercial litigation background, Michael Sanders is recommended, and global head of tax Yash Rupal is highly respected in the market.
Slaughter and May’s tax group has ‘tremendous strength in depth’, and its contentious tax practice sees the firm acting for large corporations in big-ticket litigation. It acted successfully for the Bank of Ireland in a dispute with HMRC before the Court of Appeal, and continues to represent Sempra Metals in ongoing landmark litigation. On the dispute resolution side Sarah Lee and Nick Gray are the names to note, and ‘top-class operator’ Steve Edge is also highly respected.
Freshfields Bruckhaus Deringer LLP brings together ‘heavy-hitting’ tax and dispute resolution practitioners to field a strong contentious tax team acting on large and complex matters. It continues to act for AstraZeneca against HMRC concerning both the transfer pricing and controlled foreign companies legislation. The hearing is set down for 2010 and will be of significant importance to multinationals. Helen Buchanan and Philip Croall are recommended.
The ‘responsive and practical’ contentious tax team at Lovells LLP demonstrates ‘technical expertise’ and provides a ‘very good level of service’. ‘Business-oriented’ Solicitor-advocate Greg Sinfield is ‘the perfect adviser’, and is regarded as the leading practitioner for contentious indirect tax matters.
With a pipeline of work from its associated accountancy firm, PricewaterhouseCoopers Legal LLP is ‘competitive’ and ‘willing to go the extra mile’. The firm successfully represented Baxi Group in the Court of Appeal in a case concerning VAT on a loyalty programme which has now been referred to the ECJ by the House of Lords. Agnes Quashie and Boaz Goren are recommended.
Reynolds Porter Chamberlain LLP’s tax litigation practice grew with the appointment of two junior tax litigators, Matthew Dando and Matthew Greene, from within the firm. It acts on both direct and indirect tax matters and is currently representing over 60 clients in discrimination claims against HMRC involving issues such as group relief, thin capitalisation and ACT on the payment of dividends. Fiona Walkinshaw and Mark Whitehouse ‘do a first-class job on behalf of clients’.
Pinsent Masons LLP is also developing expertise in the contentious tax area.