Wednesday, 23 July 2014
Last updated 2 hours ago
May 19 2009 | 2:00am ET
In its fight with British tax authorities, hedge fund Pentagon Capital Management may have a new weapon.
The London firm, which decided to liquidate last year after it was sued by the U.S. Securities and Exchange Commission, has filed a claim against the U.K.’s Revenue & Customs, seeking £1.27 million (US$1.9 million) in “erroneously paid” taxes. The move comes in the wake of a court case that forced the British government to ditch its stance that value-added tax overpayments could only be claimed for three years.
Pentagon’s claim is dependent on yet another court case, involving Scottish Equitable, but it’s taking its shots now anyway.
“HM Revenue & Customs are querying the tax allowability of certain deductions within the company's tax computations in earlier years,” the hedge fund wrote in a regulatory filing. “The company's tax advisers strongly believe that HMRC have no statutory basis for disallowing such deductions and are prepared to defend the company's position vigorously.”
For their part, British tax authorities say that Pentagon owes them £7.6 million (US$11.5 million).
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…