The appellants, Refinitiv Ltd & Ors, sought a judicial review against HMRC’s decision to issue charging notices (CNs) for diverted profits tax amounting to £167m related to intellectual property sold in 2018.

Financial data specialist Refinitiv argued that HMRC’s decision to issue these notices was an ‘abuse of power’ because it encroached on an advance pricing agreement (APA) that HMRC reached with them in 2012.

The agreement had set an arm’s length price for services the appellants provided for the period 2008-2014.

HMRC had opened enquiries into certain arrangements entered into between the subsidiaries in the context of diverted profits tax and issued the notices to the applicants under Schedule 36 of Finance Act 2008.