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Sports Direct boss Mike Ashley has launched legal action against HMRC, saying that the government body made “extensive” breaches of data protection, The Times has reported.
The High Court has heard that Ashley was “met with a complete stone wall”, having requested his personal data after HMRC made him aware of £13.6m in additional taxes that he has to pay.
While HMRC conceded that it did breach obligations, it is still defending the claim.
It is understood that the outstanding tax total comes after Ashley offloaded multiple properties to special purpose vehicles owned by Sports Direct International in a deal worth £88.6m back in 2012.
HMRC first opened an inquiry into the businessman’s tax return and issued a notice claiming he owed a further £13.6m in tax. However, Ashley challenged the notice, which HMRC withdrew in October 2022.
A month earlier, in September 2022, Ashley’s lawyers requested his personal data in relation to the inquiry from HMRC.
Anya Proops, Mike Ashley’s barrister, told the High Court in London: “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 Ashley in connection with the inquiry, not a single iota of data was disclosed to him.”
According to the businessman’s legal team, HMRC provided some data but only 17 months after the request was made – and a month after the legal action was filed.
The legal team also claimed that the government body is still breaching its obligations over some of the data. As a result, the team are seeking a declaration in Ashley’s favour in relation to the outstanding data and associated legal fees.
James Cornwell, for HMRC, told the court that Ashley has “sought to adopt an unjustifiably broad interpretation of his personal data” from the start of the request.
Cornwell conceded that the government body previously failed to comply with obligations, but added that it has since “actively sought, in good faith, to rectify that default, at the further expenditure of very considerable time and effort”.
The hearing is due to conclude today (3 December), with a decision expected in writing at a later date.
