STEP ISRAEL / Case law update Jersey. Presented by Paul Matthams. Partner, Jersey June 2018

Similar documents
The sins of the father Yearwood v Yearwood

LIMITED LIABILITY PARTNERSHIPS (JERSEY) LAW 1997

TREATY SERIES 2009 Nº 13. Agreement between Ireland and the Isle of Man for the Exchange of Information Relating to Tax Matters and its Protocol

LIMITED LIABILITY PARTNERSHIPS (JERSEY) LAW 1997

Chapter 1 GENERAL PROVISIONS. Article 1 GENERAL DEFINITIONS. 1. For the purposes of this Agreement, unless the context otherwise requires:

A purposive approach to the rule against foreign revenue enforcement. International Corporate Rescue 2010, 7(2),

The Government of Iceland and the Government of Bermuda, desiring to facilitate the exchange of information with respect to taxes;

BETWEEN THE GOVERNMENT OF THE PRINCIPALITY OF LIECHTENSTEIN AND THE GOVERNMENT OF IRELAND FOR THE EXCHANGE OF INFORMATION RELATING TO TAX MATTERS

STATEMENT OF INSOLVENCY PRACTICE 9A (NI) REMUNERATION OF INSOLVENCY OFFICE HOLDERS NORTHERN IRELAND

THE PRINCIPALITY OF LIECHTENSTEIN

JAN JOSEPH HAGE AARONSON LLP UPCOMING EVENTS & LIKELY DATES. Supreme Court rejects Government s Article 50 appeal NEWSLETTER.

ELECOSOFT PUBLIC LIMITED COMPANY SCRIP DIVIDEND SCHEME

Terms of business for authorised intermediaries

GUIDE TO TRUSTS IN MAURITIUS

AGREEMENT BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE BRITISH VIRGIN ISLANDS UNDER

Mr and Mrs Sample and future owners or occupants of the Property and Your/their mortgage lender(s).

Guidance Note VOLUNTARY ARRANGEMENTS - A CREDITOR S GUIDE TO INSOLVENCY PRACTITIONERS FEES

Duties of directors of Jersey companies

STATEMENT OF INSOLVENCY PRACTICE 9 (NORTHERN IRELAND) REMUNERATION OF INSOLVENCY OFFICEHOLDERS

The County Insurance SME POLICY SUMMARY Commercial Legal Expenses Insurance

PAINTING AND DECORATING ASSOCIATION POLICY SUMMARY Commercial Legal Expenses Insurance

INSOLVENCY PRACTITIONERS ASSOCIATION. CERTIFICATE OF PROFICIENCY IN PERSONAL INSOLVENCY English Version Examination 15 June 2012

AGREEMENT BETWEEN THE KINGDOM OF THE NETHERLANDS AND

Landbay Investor Terms & Conditions

Landbay Investor Terms & Conditions

Touchstone Underwriting Policy Summary Commercial Legal Expenses Insurance

Offshore Security Enforcement

TC01381: Wheels Common Investment Fund Trustees Ltd and Others

Corporate. Burges Salmon Guide to the responsibilities and duties of a company director

Commercial Legal Expenses Insurance Policy Summary

Contract for Services Ltd Contractors

XFOR LOCAL AUTHORITY SUPPORT LIMITED

Date. Dear TERMS OF ENGAGEMENT FOR (THE "CLIENT") AND ASSOCIATED ENTITIES

EXCHANGE OF LETTERS CONCERNING

OH, THE PLACES YOU LL GO! Forum shopping and filing insolvency proceedings in a global legal world. Insolvency Commission LONDON 2015 WORKSHOP B

Upper Tribunal (Immigration and Asylum Chamber) PA/03023/2017 THE IMMIGRATION ACTS

STATEMENT OF INSOLVENCY PRACTICE 9 (E&W)

ASSURA PLC (incorporated in England and Wales under the Companies Act 2006 with registered number )

Scrip Dividend Scheme Booklet

Matrix Underwriting Management POLICY SUMMARY Commercial Legal Expenses Insurance

Sub-consultant 2010 (2012 revision)

Hermes Investment Funds Public Limited Company

TC05838 Appeal number: TC/2013/05285

SEGRO plc Scrip Dividend Scheme Booklet

INCOME TAX (AMENDMENT No. 34) (JERSEY) LAW 200-

Carey Olsen Starting Point Employment Law Guide Jersey Employment Law

For personal use only

ITE GROUP PLC. (Incorporated and registered in England and Wales under number ) ( Company )

NEWRIVER REIT PLC SCRIP DIVIDEND SCHEME BOOKLET

Touchstone Underwriting POLICY SUMMARY Commercial Legal Expenses Insurance

Innovative Finance ISA Key Information

SPOTLIGHT ON: PENSIONS AND INHERITANCE TAX

Rules of the Shanks Group plc 2015 Sharesave Scheme

Insolvency Licensing Regulations and Guidance Notes EFFECTIVE FROM 13 OCTOBER 2015

XFOR SPORT SECURE LIMITED

Exchange of Information and Collection of Taxes. BCAS January 2015

United Kingdom Glossary of Insolvency Terms. Authors: David WHITE & John FRANCIS, Association of Business Recovery Professionals (R3)

The British Land Company PLC Scrip Dividend Scheme

STATEMENT OF INSOLVENCY PRACTICE 9 (E&W)

As previously stated, we pride ourselves on the quality of work undertaken. would invite creditors to consider the following points:

SUBMISSION OF ADVERTISING:

ERROR! NO TEXT OF SPECIFIED STYLE IN DOCUMENT.

ADMINISTRATIVE SUPPORT TO THE JUDICIARY IN THE UK INSOLVENCY SYSTEM

Commercial legal expenses insurance

INSOLVENCY PRACTITIONERS ASSOCIATION CERTIFICATE OF PROFICIENCY IN PERSONAL INSOLVENCY SCOTTISH PAPER. Examination 15 June 2012

1. The Parties shall endeavour to avoid the imposition of restrictive measures for balance-of-payments purposes.

Intermediary Terms and Conditions

THE COMMISSIONERS FOR HER MAJESTY S REVENUE AND CUSTOMS. - and

SEGRO plc Scrip Dividend Scheme Booklet

CONTENTS The Group... 3 Introduction... 3 Definitions and Interpretation... 3 Fees, Billing & Disbursements... 5 Client Monies...

Bankruptcy and Transgender Guidance for transgender bankrupts

We have seen and generally support the comments made by Law Society of England and Wales in its response (the Law Society Response).

Tax Agent Services Act 2009

Steptoe & so on. The facts of the case. What is the issue? What does it mean to me? What can I take away? 1 November 2015

Mr and Mrs Sample and future owners or occupants of the Property and Your/their mortgage lender(s)

Atradius Modula Policy - Sample

INMARSAT PLC SCRIP DIVIDEND SCHEME

Before: THE HONOURABLE MR JUSTICE LEWIS Between:

CCH Premier Protection (unregulated) policy

Legal Expenses section. AXA Business Insurance

Atradius Media Policy - Sample

Facility Agreement Continuing Credit Facility - Line of Credit Terms & Conditions

- and - THE COMMISSIONERS FOR HER MAJESTY S. TRIBUNAL: JUDGE ROGER BERNER MR HARVEY ADAMS FCA (Member)

VIRGIN ISLANDS LIMITED PARTNERSHIP REGULATIONS, 2018 ARRANGEMENT OF REGULATIONS PRELIMINARY PART II LIMITED PARTNERSHIP NAMES.

Carey Olsen Starting Point Employment Law Guide Jersey Employment Law

Distributions and share purchases and redemptions under the Companies (Jersey) Law 1991

The Novelty of Pre-Packs in Jersey: The Just and Equitable Winding Up Dynamic

Determination by Consent Report. Mr Marc Living Pallant Chambers 12 North Pallant CHICHESTER West Sussex PO19 1TQ. (Middle Temple, July 1983)

Standard Terms of Business

Digital Satellite Warranty Cover Ltd (in Compulsory Liquidation) Joint Liquidators fourth progress report

To holders of Ordinary Shares and, for information purposes only, Class A Shareholders Dear Shareholder

KINGDOM OF SAUDI ARABIA. Capital Market Authority THE RULES FOR SPECIAL PURPOSES ENTITIES. (Draft)

ConvaTec Group Plc. Scrip Dividend Scheme Information Booklet

A CREDITORS GUIDE TO FEES CHARGED BY TRUSTEES IN BANKRUPTCY ENGLAND AND WALES

PERSONAL PENSION PLUS TRANSFER APPLICATION FORM. For post 30 June 1988 plans only

NUMIS CORPORATION Plc

BURGIS & BULLOCK STANDARD TERMS OF BUSINESS (Last revised May 2018)

IMPORTANT LEGAL NOTICE - The information on this site is subject to a disclaimer and a copyright notice. JUDGMENT OF THE COURT (Sixth Chamber)

Marley v Mutual Security Merchant Bank and Trust Co Ltd

Forfeiture of Lease (Breach of Covenant) Indemnity Insurance Policy (LENDER ONLY)

Transcription:

STEP ISRAEL 2018 Case law update Jersey Presented by Paul Matthams Partner, Jersey 19-20 June 2018 / Case law update Jersey

Introduction Ariel v Halabi and Her Majesty s Revenue & Customs (2018) JRC 006A John David Ariel trustee in bankruptcy of Simon Halabi Simon Halabi - bankrupt in UK and executor of the Estate of X deceased HMRC Issued an information notice in connection with Mr H s UK tax affairs 2 / Case law update Jersey

Background March 2010 October 2012 Mr H declared bankrupt in UK Trustee in bankruptcy produces letter of request from English High Court to Royal Court of Jersey Requested Jersey court to exercise its powers under the Bankruptcy (Désastre) (Jersey) Law 1990 Article 49 to: Recognise trustee in bankruptcy's appointment and Give the trustee powers to be exercised in Jersey 3 / Case law update Jersey

Recognition Order Recognised the trustee in bankruptcy's appointment by the court in England Authorised the exercise in Jersey of all powers the trustee was entitled to exercise in England and Wales to the extent not contrary to Jersey law Authorised obtaining of material from named parties in relation to trusts and other entities But "Save with the leave of this Court, the Representor shall only use the information or documents so produced for the purposes of the administration of the estate in bankruptcy of Mr H, in whichever jurisdiction, under the direction of the High Court. 4 / Case law update Jersey

November 2013 Proceedings in Jersey to join the trustees of the A Trust of which Mr H s estate in bankruptcy was a substantial creditor Royal Court of Jersey ordered (the "Consent Order") the trustees of the A trust to provide information and documentation to the trustee in bankruptcy: "Provided always that such disclosure shall not be used for any purpose other than the Representation and shall not be disclosed to any third parties, other than to the parties legal advisors.." 5 / Case law update Jersey

May 2017 First Tier Tribunal (Tax Chamber) in London approved the issue of an "information notice" by HMRC requiring the trustee in bankruptcy to produce to HMRC all documents and information received pursuant to the Recognition and the Consent Order The trustee in bankruptcy applied to the Jersey court seeking: Court s leave under the Recognition Order and A variation of the Consent Order in both cases to enable him to comply with the information notice 6 / Case law update Jersey

HMRC Asserted that information predating the bankruptcy was required by it to establish Mr H s present and past tax position First Tier Tribunal approved the issue of the information notice on ex parte application of HMRC but trustee in bankruptcy was allowed to make written representations. His difficulty in respect of the Jersey material was recognised but issue of notice was approved on the basis that the recipient should use best endeavours to obtain the material which would include the obtaining of appropriate orders from the Jersey court Failure to obtain variation having used best endeavours would amount to a reasonable excuse for failure to comply with the information notice so penalties should not be imposed for non-compliance 7 / Case law update Jersey

Three issues for the Jersey court 1. Would compliance with the information notice constitute a breach by the Trustee of the Recognition Order or the Consent Order? 2. Did the court have jurisdiction to issue the orders requested? 3. If so, should the court do so in the exercise of its discretion? 8 / Case law update Jersey

Findings of the Jersey court on the first two issues Compliance with the information notice would be breaches of the Recognition and Consent Orders without suitable further orders from the Jersey court Court had jurisdiction to give leave for material obtained for the purposes of the administration of the estate of the bankrupt, to be used for other purposes. That was the purpose of the provision "In our judgment, it is ultimately a matter for the Court as to the level of restriction which it places upon the use of material obtained pursuant to an Article 49 order and the Court must have jurisdiction to vary that in the light of changed circumstances " Consent Order was by its nature not a final order. Court sought to control onward disclosure of material supplied to a party in the relevant proceedings "In our judgment Court always has an ongoing ability to vary an order which it has made about the confidentiality of material produced before it " 9 / Case law update Jersey

Enforcement of foreign taxes Rule 3 of Dicey Morris and Collins The Conflict of Laws (15th edition) "English courts have no jurisdiction to entertain an action for the enforcement, either directly or indirectly, of a penal revenue or other public law of a foreign state" Based on the House of Lords decision in Government of India v Taylor [1955] AC 491 Rule is also followed in Jersey law 10 / Case law update Jersey

Enforcement of foreign taxes continued After reviewing English case law Jersey court held: The schedule 23 (information notice) provisions are "investigatory powers which enable HMRC to gather information for the purpose of checking a taxpayer s tax position Fact of some "teeth" to ensure compliance "does not turn the provision into an enforcement provision for our purposes Fact that trustee in bankruptcy was on the "horns of a dilemma"(contempt of the Jersey court or failure to comply with an obligatory notice under English law) "did not amount to indirect enforcement of a foreign tax law" 11 / Case law update Jersey

Exercise of court s discretion Recognised that bankruptcy and tax are two very separate matters Separate legislation to enable confidential information: To assist in overseas insolvencies (Article 49 of the Bankruptcy Law) To prevent tax evasion (Taxation - exchange of information legislation) Wrong as a matter of general principle for court to mix up the two "routes" established by the legislation 12 / Case law update Jersey

Court s discretion continued "If it were to become common for material supplied for insolvency purposes to then be disclosed to taxation authorities for tax purposes, this would be to circumvent the separate routes established by the legislature" " in the ordinary case, this court should refuse a variation permitting a trustee in bankruptcy to comply with an information notice where HMRC are able to obtain that information using the agreed procedure of a TIEA (tax information exchange agreement) 13 / Case law update Jersey

TIEA procedure Requires a requesting party to pursue all available means in its own territory to obtain the information before requesting information under the TIEA save "where recourse to such means would give rise to disproportionate difficulty" In this case, if the Jersey court refused to vary the orders and the trustee in bankruptcy refused to comply with the information notice, HMRC would have complied with the unable to obtain the information by other means test and the Comptroller of Taxes in Jersey would have to assist under the terms of the Jersey / UK TIEA 14 / Case law update Jersey

Court s conclusions In general, consent to disclose of information for tax purposes should not be given under the bankruptcy legislation where there is an alternative route of obtaining that information In this case, HMRC applied under the TIEA but still required material relating to the period prior to 2010, outside the ambit of the TIEA "In these circumstances, we have to determine whether to consent to the Trustee complying with the information notice in circumstances where, were we to refuse, and the Trustee were subsequently to refuse to comply, either he would be penalised, (possibly on a daily basis) or HMRC would be denied access to material situated in the United Kingdom to which they are entitled under English law, where an independent judicial monitor has found their request to be reasonable and there is no alternative route available under the TIEA The orders were granted to enable the trustee in bankruptcy to comply with the information notice 15 / Case law update Jersey

Speaker Paul Matthams Partner, Jersey D E +44 (0) 1534 822225 paul.matthams@careyolsen.com 16 / Case law update Jersey

Questions / Case law update Jersey

This presentation is intended for educational purposes only, is not for circulation and does not constitute legal advice. Legal advice should be sought for specific queries or circumstances. Carey Olsen 2018 / Case law update Jersey