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Mike Ashley, the retail tycoon, was “met with a complete stone wall” after requesting personal data related to a multimillion-pound tax dispute with HM Revenue & Customs, the High Court has heard.
The Sports Direct founder is bringing legal action against the tax body over allegedly “extensive” breaches of data protection obligations. HMRC is defending the claim but accepts that it breached obligations to a smaller extent.
At a hearing on Monday the High Court heard that in 2012, Ashley sold multiple properties to special purpose vehicles owned by Sports Direct International for about £88.6 million.
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HMRC subsequently opened an inquiry into his tax return and later issued a notice to Ashley, claiming he owed an additional £13.6 million in tax. The billionaire challenged the notice and it was withdrawn in October 2022.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 Mr Ashley’s personal data”.
Anya Proops KC said Ashley, 60, wanted to know what data of his HMRC had “to help him better understand how these significant decisions concerning his personal property and his personal tax liability came to be taken”.
She added: “In effect, the subject access request had been met with a complete stone wall. Despite the fact that HMRC was inevitably processing very extensive personal data concerning Mr Ashley in connection with the inquiry, not a single iota of data was disclosed to him.”
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Ashley’s team claimed that HMRC provided some data but only 17 months after the request was made, and a month after the legal action was filed. They alleged that HMRC is still breaching its obligations over some of the data and are seeking a declaration in his favour, the outstanding data and his legal fees.
James Cornwell, for HMRC, said the tax body “frankly accepts” that it previously failed to comply with obligations, but added that HMRC has since “actively sought, in good faith, to rectify that default, at the further expenditure of very considerable time and effort”.
He told the court that Ashley has “sought to adopt an unjustifiably broad interpretation of his personal data” from the start of the request. The hearing is due to conclude on Tuesday with a decision expected in writing at a later date.