Robert Venables QC, Peter Doyle, Timothy Lyons and Amanda Hardy for D.
On a true construction of section 739 of the Income and Corporation Taxes Act 1988 the off-shore companies were not liable to pay United Kingdom corporation tax on their profits, so that no offence of cheating or conspiring to cheat the Inland Revenue arose.
Crime – Common law offence – Cheating public revenue – Offshore companies registered in Jersey – Concealment of central management and control in United Kingdom – Companies’ income deemed to be that of individual resident in United Kingdom – Shadow director failing to declare benefits provided by companies and to respond truthfully to questioning – Whether deeming provision affecting company’s liability to corporation tax – Whether infringement of right to peaceful possession of property – Whether shadow director liable to tax under Schedule E in respect of benefits in kind and accommodation – Whether violation of shadow director’s right to fair trial – Income and Corporation Taxes Act 1988 (c 1), ss. 19(1), 145(1)(8), 154(1), 167(1)(a), 168(2)(8), 739(2)1 – Human Rights Act 1998 (c 42), Sch. 1, Pt I, art 6, Pt II, art 12