Companies must approach HMRC with suitable care when proposing a restructuring plan, mindful of lessons learned from recent case law.
Ever since unpaid taxes due to HMRC were crammed down pursuant to a restructuring plan that it voted against but did not actively oppose in Houst,[2022] EWHC 1941 (Ch). HMRC has challenged restructuring plans and asserted its interests more aggressively, causing the failure of restructuring plans in Nasmyth[2023] EWHC 988 (Ch).and Great Annual Savings (GAS).[2023] EWHC 1141 (Ch). In the latter cases, the court was unwilling to exercise its discretion to cram down and bind HMRC as a dissenting class. As general statements of principle, the court said that HMRC is a creditor whose views deserve considerable …
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