Mike Ashley has called on Chancellor Rachel Reeves to hold HMRC “to account” following his victory in a data protection case against the tax authority.
The High Court ruled yesterday (27 January) that HMRC had taken “too narrow an approach” when it refused to hand over personal information requested by the Sports Direct founder under a subject access request, City AM reported.
Such requests allow individuals to obtain information held about them by an organisation.
The retail tycoon‘s claim traces back to 2012, when he sold a group of properties to special purpose vehicles owned by Sports Direct for £88.6m. HMRC initially argued that the property sale price had been inflated, demanding an additional £13.6m in taxes from Ashley. However, the tax authority dropped its claim after a legal challenge in 2022.
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In September 2022, Ashley’s legal team made a request for HMRC to provide his personal data in relation to the inquiry. However, the court heard that HMRC had “wrongfully withheld a very considerable amount of data on the basis that it does not amount to Ashley’s personal data.”
The requested data was provided 17 months after the request and a month after the legal action was filed.
Justice Heather Williams ruled that HMRC had “adopted too narrow an approach to what amounts to the claimant’s ‘personal data’.”
HMRC’s barrister, James Cornwell, acknowledged that the tax body “frankly accepts” it had failed to comply with its obligations.
A spokesperson for Ashley described the ruling as “vindication” and urged Chancellor Reeves to take action against HMRC.
“Mike was recently named as one of the top ten taxpayers in the UK. However, he believes HMRC should be held to account by Rachel Reeves for its flawed investigation into his finances and its subsequent behaviour,” the spokesperson said.
“The Government is committed to a pro-growth agenda, but this will not be achieved by demonising high earners who are willing to pay their fair share.”
An HMRC spokesperson responded, saying: “We take our data protection obligations very seriously and respect the rights of taxpayers who wish to access the personal data we hold about them. We acknowledge the court’s findings and its helpful guidance, and we will reconsider our response to the request made by Mr Ashley.”
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