MW High Tech Projects UK Limited v The Commissioners for HMRC

MW High Tech Projects UK Limited v The Commissioners for HMRC

The appellant’s entitlement to RDEC was extinguished because, at the time of claim and by the last amendment date, its latest published accounts were not prepared on a going concern basis as required by ss 104S and 104T of the Corporation Tax Act 2009. The Tribunal cannot go behind the published accounts, apply...

Source-derived case information.

Parties
Appellant: MW High Tech Projects UK Limited; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Tax Appeal / First Tier Tribunal Judgment
Outcome
Appeal dismissed
Legal Topics
Corporation Tax, Research and Development Expenditure Credit (rdec), Going Concern, Statutory Interpretation, Accounting Standards, Auditing Standards
Tax Law Company Law Corporation Tax Research and Development Expenditure Credit (rdec) Going Concern Statutory Interpretation Accounting Standards Auditing Standards

Source-derived case record

Summary, issues, holding and outcome

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Parties

MW High Tech Projects UK Limited

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / First Tier Tribunal Judgment

Legal Issues

  1. 1 Whether the appellant was entitled to a Research and Development Expenditure Credit (RDEC) under the Corporation Tax Act 2009 given its accounts were not prepared on a going concern basis
  2. 2 Interpretation of sections 104S and 104T of the Corporation Tax Act 2009
  3. 3 Whether the published accounts were incorrect or could be retrospectively amended

Ratio Decidendi

The appellant’s entitlement to RDEC was extinguished because, at the time of claim and by the last amendment date, its latest published accounts were not prepared on a going concern basis as required by ss 104S and 104T of the Corporation Tax Act 2009. The Tribunal cannot go behind the published accounts, apply subsequent legislative amendments retrospectively, or consider extra-statutory concessions or HMRC conduct. The appeal is dismissed.

Court Disposition

Appeal dismissed

Orders

  • The decision of HMRC to refuse the RDEC claim is upheld.