HMRC tax dispute with EY over Tory donor’s affairs on hold for settlement talks
HMRC’s tax dispute with accounting firm EY and Jamie Ritblat, a British property investor and Tory donor, has been placed on hold as settlement talks take place, City PM has learned.
The tax authority filed lawsuits against Ritblat and the Big Four firm two years ago over the amount of taxes Ritblat paid on £141m in profits made by his property investment firm Delancey.
Jamie Ritblat – the son of former British Land owner Sir John Ritblat – founded Delancey in 1995, through which he later bought London’s Olympic Village in 2011 via a joint-venture with Qatar’s sovereign wealth fund.
The case centres on a £400 settlement paid to HMRC by Ritblat in 2015.
HMRC alleges that Ritblat and EY made misrepresentations to the tax authority, and said it would never have agreed to the settlement if the correct disclosures had been made.
But Ritblat and EY argue that the 2015 settlement blocks the agency from collecting any further taxes on Delancey’s £141m profits that it paid into an employee benefit trust.
While HMRC initially filed two separate lawsuits against Ritblat and EY, the High Court has since slotted both cases together.
However, while many pre-trial hearings have taken place, the case has been paused until 31 May, according to a court order seen by City PM
The order states that if a claim or part of the claim is settled on or before 31 May, the parties need to inform the court. However, if there is no settlement by next Friday, the parties need to apply to the court by 10 June to re-list the trial.
A spokesperson for Delancey told City PM that no settlement had been reached in its dispute with HMRC.
EY declined to comment, while HMRC said “due to taxpayer confidentiality, we’re legally unable to neither confirm or deny whether there was/is any settlement discussions”.