Mike Ashley, the tycoon behind Sports Direct, faces significant challenges regarding a £13.6 million tax demand from HMRC, sparking legal proceedings in the High Court.
- Ashley’s pursuit of personal data from HMRC, linked to the tax inquiry, was obstructed, as revealed by his legal representation.
- In 2012, Ashley sold properties notably connected to Sports Direct International, leading to an HMRC tax investigation and subsequent notice.
- After disputing the tax notice, it was retracted in October 2022, yet Ashley continues to seek resolution on data handling issues.
- HMRC acknowledges some breaches of data obligations but contends efforts are underway to address these, according to court statements.
Mike Ashley, the businessman known for his role at Sports Direct, is embroiled in a legal dispute with HM Revenue & Customs (HMRC) concerning a tax bill amounting to £13.6 million. According to Ashley’s legal team, his request for personal data related to this tax inquiry was effectively ignored by HMRC. This lack of response has led to allegations of substantial data protection breaches, contributing to the ongoing legal battle.
The genesis of the HMRC inquiry dates back to 2012, when Ashley engaged in property transactions with special purpose vehicles owned by Sports Direct International, valued at approximately £88.6 million. This prompted a detailed examination of his tax returns, resulting in the controversial £13.6 million tax notice. However, Ashley’s challenge to this notice proved successful, leading to its withdrawal in October 2022.
In the High Court, Ashley’s barrister, Anya Proops KC, emphasized that HMRC utterly failed to provide the requested data, crucial for understanding the inquiry’s breadth. She stated, “The subject access request had been met with a complete stone wall,” underscoring the total lack of data disclosure despite the presumed extensive personal data held by HMRC about Ashley.
While HMRC has conceded to some degree of non-compliance, James Cornwell, their representative, asserted that the organization is striving in good faith to rectify these lapses. The court was informed that Ashley’s interpretation of his personal data demands was, from HMRC’s perspective, overly broad.
The legal proceedings highlight ongoing tensions regarding data rights and compliance, with a judgement anticipated after the conclusion of the hearing on Tuesday. The ruling is expected to be delivered in writing at a future date, potentially setting a precedent for similar cases.
The case exemplifies complex challenges in data protection law and tax compliance for high-profile individuals.
