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CDDA s 17 and IA s 216 permission refused: lack of transparency, HMRC arrears and interim breaches—Wilson v Secretary of State for Business and Trade [2025] EWHC 691 (Ch)

Published on: 08 April 2025

Published by a LexisNexis Restructuring & Insolvency expert
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Wilson v The Secretary of State for Business and Trade [2025] EWHC 691 (Ch) What are the practical implications of this case?

This decision underscores the need to furnish complete, candid evidence when seeking relief under the CDDA 1986, s 17, and to observe any interim permission terms. Even though the allegations of unfitness did not relate to trading to HMRC’s prejudice, the court scrutinised the companies’ tax positions. Permission was not refused simply because of historic arrears or the presence of time to pay arrangements. The applicant’s conduct was pivotal. His first and second affidavits contained ‘material self-serving inaccuracies’ (para [97]). His account lacked openness. He intentionally attempted to obscure the companies’ history of tax non-payment and late payment (see para [89]) and did not fully cooperate with the Secretary of State’s requests for information (see para [101]). In addition, he breached interim permission conditions requiring him to secure the prompt settlement of the companies’ tax debts. Applicants should anticipate exacting scrutiny of tax compliance and be ready to demonstrate prompt payment in accordance with any conditions imposed. The judgment underlines the need to tackle any tax arrears head on...

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