HMRC sues EY over Ritblat tax

HM Revenue & Customs is suing EY over alleged misrepresentations made during the negotiation of a tax settlement relating to Jamie Ritblat. The lawsuit is linked to a broader dispute between HMRC and the property investor about whether the 2015 settlement of just £400 should block further taxes on £141m of profit paid out after the deal was struck. HMRC’s action against EY, which negotiated the settlement, is a highly unusual move, according to tax experts. The dispute between HMRC and the Delancey developer now spans four tracks of litigation in what is set to be years of complex and expensive legal wrangling. Ritblat has sued HMRC in the High Court, while the tax authority has brought a High Court lawsuit against Delancey. Along side that there is a tax tribunal looking into Ritblat’s personal tax returns. And now HMRC is suing his accountant. HMRC said it intends to serve the latest case before 28 November. The FT (£)