27th Jan 2025 13:43
(Alliance News) - HMRC took "too narrow an approach" to retail tycoon Mike Ashley's request for personal data related to a GBP13.6 million tax dispute, the High Court has ruled.
The Frasers Group PLC founder brought a legal action against the tax body over allegedly "extensive" breaches of data protection obligations.
And in a ruling on Monday, a High Court judge said HMRC "will need to reconsider its response" to a request Ashley made for his data.
The High Court heard in December that in 2012, Ashley sold multiple properties to special purpose vehicles – subsidiaries created by a parent company to isolate financial risk – owned by Sports Direct International for around GBP88.6 million.
HMRC subsequently opened an inquiry into his tax return and later issued a notice to Ashley, claiming he owed an additional GBP13.6 million in tax.
Ashley challenged the notice and it was withdrawn in October 2022.
Under data protection law, anyone can ask an organisation for a copy of the personal information it is using or storing on them, known as subject access requests.
In September 2022, Ashley's lawyers made a request, asking HMRC for his personal data in connection to the inquiry.
The High Court in London was told by the businessman's barrister that the tax body "wrongfully withheld a very considerable amount of data on the basis that it does not amount to Ashley's personal data".
The court heard that HMRC provided some data 17 months after the request was made, and a month after the legal action was filed.
James Cornwell, for HMRC, said the tax body "frankly accepts" that it previously failed to comply with obligations.
He later told the court that Ashley "sought to adopt an unjustifiably broad interpretation of his personal data" from the start of the request.
But in Monday's ruling, Justice Heather Williams said that HMRC "has currently adopted too narrow an approach to what amounts to the claimant's 'personal data'".
She continued: "It is likely that a proper application of this concept will minimise the circumstances in which additional contextual information will need to be provided."
The judge added in a 52-page ruling: "The sheer fact that the claimant understood the nature of the enquiry and the issues that it was directed to, does not mean that a particular extract of his personal data, denuded of its proper context was intelligible to him."
Justice Williams will decide any remedies, including a potential declaration in Ashley's favour, at a later date.
Frasers shares were 1.0% lower at 598.00 pence each on Monday afternoon in London.
By Jess Glass, PA Law Editor
Press Association: Finance
source: PA
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