Assets Recovery Agency v McCormack [2007] EWHC 908 (QB) (30 March 2007)

Assets Recovery Agency v McCormack [2007] EWHC 908 (QB) (30 March 2007)

There is an existing cause of action in respect of unpaid tax under the Taxes Management Act 1970, and the statutory obligations to account for and pay tax are presently performable. The evidence establishes a clear threat to breach those obligations and dissipate assets. Therefore, the court has jurisdiction to confirm the freezing order. Even if no cause of action existed, the equitable jurisdiction for quia timet relief would apply on the facts.

Citation
[2007] EWHC 908 (QB)
Parties
Claimant: THE DIRECTOR OF THE ASSETS RECOVERY AGENCY; Defendant: MR. CHRISTOPHER GERRARD McCORMACK
Jurisdiction
England and Wales
Judgment Date
30 March 2007
Procedural Posture
Freezing Order Application / Return Date Hearing for Confirmation of Ex Parte Freezing Order
Outcome
Freezing order confirmed
Legal Topics
Freezing Orders, Jurisdiction, Unpaid Tax Recovery, Proceeds of Crime Act 2002, Quia Timet Injunctions
Civil Procedure Tax Law Proceeds of Crime Freezing Orders Jurisdiction Unpaid Tax Recovery Proceeds of Crime Act 2002 Quia Timet Injunctions

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Parties

THE DIRECTOR OF THE ASSETS RECOVERY AGENCY

Claimant

MR. CHRISTOPHER GERRARD McCORMACK

Defendant

Procedural Posture

Freezing Order Application / Return Date Hearing for Confirmation of Ex Parte Freezing Order

Legal Issues

  1. 1 Whether the court has jurisdiction to grant a freezing order in the absence of a quantified cause of action for unpaid tax
  2. 2 Whether a freezing order can be granted on the basis of a threatened breach of a statutory obligation
  3. 3 Whether equitable quia timet jurisdiction applies to support a freezing order

Ratio Decidendi

There is an existing cause of action in respect of unpaid tax under the Taxes Management Act 1970, and the statutory obligations to account for and pay tax are presently performable. The evidence establishes a clear threat to breach those obligations and dissipate assets. Therefore, the court has jurisdiction to confirm the freezing order. Even if no cause of action existed, the equitable jurisdiction for quia timet relief would apply on the facts.

Court Disposition

Freezing order confirmed

Orders

  • The freezing order granted ex parte on 14 March 2007 is confirmed.