The case of Re: Implement Consulting Limited (in liquidation) was the first tax avoidance misfeasance claim against former directors to reach trial.
The judgment of HHJ Briggs found that monies paid into employee benefit trusts (EBT's) by a company were in effect unlawful distributions or dividends and void. The ruling meant that former directors and shareholders had to pay back over £3m to the company in liquidation.
Proof, if it were needed, that Judge's will see through the name or title given to a transaction and look at it's substance. If it walks like a duck and quacks like a duck..
A landmark judgment could see company directors and shareholders pursued for millions of pounds for funds paid into tax avoidance schemes. The ruling, handed down by Chief Insolvency and Companies Court Judge Briggs, will see the directors and shareholders of Implement Consulting Ltd having to pay back over £3 million to the company and its creditors – despite it being placed into liquidation in 2016.