Mike Ashley Tells HMRC... They're not Above the Law!

Mike Ashley, the billionaire founder of Frasers Group and former owner of Newcastle United FC, has scored a significant legal victory against HMRC in a case that highlights the tax authority’s handling of personal data.

The ruling, which found HMRC had wrongly withheld personal information linked to an abandoned £13.6m tax inquiry, could have broader implications for taxpayers’ rights and government accountability.

The Case Against HMRC

Ashley’s dispute with HMRC stems from a 2012 transaction in which he sold properties worth £88m to special purpose vehicles owned by Sports Direct.

HMRC investigated the deals, concluding that they had been sold at an inflated value, and claimed Ashley owed an additional £13.6m in tax.

However, after a legal challenge, the tax authority withdrew its decision in 2022.

Following the withdrawal of the tax claim, Ashley submitted a Subject Access Request (SAR) to HMRC, demanding access to all personal data the organisation held on him in relation to the investigation.

Under data protection law, individuals have the right to request their personal data from any organisation.

Ashley argued that HMRC had “wrongfully withheld a very considerable amount of data” and had breached its legal obligations.

The High Court Ruling

The High Court found that HMRC had taken an “unduly restrictive” approach to Ashley’s data request and had wrongly withheld information.

Despite accepting past failures, HMRC argued that Ashley had taken an excessively broad view of what constituted his personal data.

The court’s decision now compels HMRC to review its records and ensure all relevant data is disclosed.

A further ruling on potential remedies, including a formal declaration in Ashley’s favour, is expected.

Implications for Taxpayers and HMRC

This ruling raises key questions about HMRC’s approach to transparency, data protection and its treatment of high-net-worth individuals.

Ashley’s spokesman highlighted concerns about HMRC’s conduct, stating:

“Mike was recently named as being among 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 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.”

This case follows a pattern of high-profile disputes involving HMRC and wealthy individuals.

While tax enforcement is a necessary function, the fairness and proportionality of HMRC’s actions continue to be a contentious issue.

A Cautionary Tale for Businesses and Individuals

For business leaders and high-net-worth individuals, this case serves as a reminder of the importance of understanding one’s data rights.

Subject Access Requests can be a powerful tool in uncovering how organisations—including government bodies—are handling personal information.

HMRC’s admission of past failures in this case suggests that even the most powerful institutions must be held to account when it comes to compliance with data protection laws.

The outcome of this dispute may prompt further scrutiny of HMRC’s practices and could lead to stronger safeguards for taxpayers seeking transparency in their dealings with the tax authority.

As HMRC reviews its handling of Ashley’s SAR, this ruling reinforces a crucial principle that even the taxman is not above the law when it comes to data protection and individual rights.