Gerald Edelman recently succeeded in a large case involving importation and duty.

HMRC seized the goods of the client to the value of approximately £300,000, stating they did not agree with the valuation. HMRC was not satisfied with the answers they received and threatened to destroy the goods. The HMRC officer dealing with the case applied very short time frames for information to be sent to him.

The Gerald Edelman Indirect Tax team has extensive experience in dealing with HMRC inspectors and has in-depth knowledge of VAT, duties and importation procedures, as well as the appeals system within HMRC. Gerald Edelman appealed to the HMRC solicitor’s office on the basis that HMRC had unlawfully seized the goods. This ‘notice of claim’ forced HMRC to begin court proceedings unless they returned the goods.

After receiving the notice, the HMRC officer released the goods without further questions and agreed that there would be no restoration fee or penalties applied. This was a great result for the business, who at one point could have had their goods destroyed.

This case shows that HMRC are not always correct, and it is always worth taking advice from a firm that specialises in these types of disputes.

Richard Staunton, Gerald Edelman Indirect Tax Partner commented, “This was a fantastic and well-deserved win for the client and my team. HMRC can make mistakes, and we are there to ensure that they treat our clients fair, reasonably and within the law”.

Lynn Lin, Partner and Head of Asia commented, “We are really pleased with the outcome, there has been numerous challenges for businesses with cross-border trading, especially on VAT and duty enquiries from HMRC. Our specialist team has done a fantastic job on assisting clients on various cases such as goods seizures, VAT fraud and general HMRC investigations”.

The affected client also commented, “GE’s VAT team has done a great job assisting us on this matter, despite tight time frames and unreasonable requirements from HMRC. We are very pleased with the outcome. Thank you for all of your help.”