Bundeszentralamt Fur Steuern (Being the Federal Central Tax Office of the Federal Republic of Germany) v Heis & Ors
The court exercised its discretion to stay the GTA's appeal against rejection of its proof of debt, and the related DB appeals, to allow the substantive issues of German tax law to be determined by the German Fiscal Courts, given the risk of inconsistent judgments, the systemic importance of the issues, and the fact that related claims will be adjudicated in Germany in any event. The stay is conditional on undertakings ensuring the German courts are an available forum and that the process will not result in undue delay or prejudice to the administration. The court refused to stay DB's Mirror and €127m Proof/Appeals, finding that the rule against double proof may bar the Mirror claim and...
- Parties
- First Applicant: Bundeszentralamt für Steuern (Federal Central Tax Office of the Federal Republic of Germany); Second Applicant: Deutsche Bank AG; Respondent: Richard Heis; Respondent: Michael Robert Pink; Respondent: Edward George Boyle
- Jurisdiction
- England and Wales
- Judgment Date
- 22 March 2019
- Procedural Posture
- Insolvency Appeal (proof of Debt) / Application for Stay of Appeals and Directions
- Outcome
- Stay granted (conditional) for GTA's appeal; stay refused for DB's Mirror and €127m Proof/Appeals (subject to further directions)
- Legal Topics
- Proof of Debt in Insolvency, Stay of Proceedings, Double Proof Rule, Jurisdiction Over Foreign Tax Claims, Comity, Indemnity Claims, German Tax Law (cum/ex Schemes)
Case Brief
Summary, issues, holding and outcome
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Parties
Bundeszentralamt für Steuern (Federal Central Tax Office of the Federal Republic of Germany)
First Applicant
Deutsche Bank AG
Second Applicant
Richard Heis
Respondent
Michael Robert Pink
Respondent
Edward George Boyle
Respondent
Procedural Posture
Insolvency Appeal (proof of Debt) / Application for Stay of Appeals and Directions
Legal Issues
- 1 Whether the appeals by the German Federal Tax Office (GTA) and Deutsche Bank AG (DB) against rejection of their proofs of debt in the MF Global UK Limited administration should be stayed to allow determination by German tax courts
- 2 Whether the English court should exercise its discretion to stay the appeals in favour of the German forum
- 3 Whether the rule against double proof bars DB's indemnity claims
Ratio Decidendi
The court exercised its discretion to stay the GTA's appeal against rejection of its proof of debt, and the related DB appeals, to allow the substantive issues of German tax law to be determined by the German Fiscal Courts, given the risk of inconsistent judgments, the systemic importance of the issues, and the fact that related claims will be adjudicated in Germany in any event. The stay is conditional on undertakings ensuring the German courts are an available forum and that the process will not result in undue delay or prejudice to the administration. The court refused to stay DB's Mirror and €127m Proof/Appeals, finding that the rule against double proof may bar the Mirror claim and...
Court Disposition
Stay granted (conditional) for GTA's appeal; stay refused for DB's Mirror and €127m Proof/Appeals (subject to further directions)
Orders
- Stay of GTA's appeal against rejection of proof of debt, conditional on undertakings regarding availability and expedition in German Fiscal Courts
- Stay of DB's appeals (Mirror and €127m) refused; directions to consider preliminary issues for determination in England; permission to apply for further directions or stay if circumstances change
Full Case Text
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