The hearing in January 2018 will be the first time an anti-avoidance case by TPR has been heard in full in the Upper Tribunal.
In December 2011, TPR’s Determinations Panel concluded it was reasonable to issue a Financial Support Direction (FSD) to ITV. ITV referred this decision to the Upper Tribunal in January 2012 but, since then, TPR has been fighting various legal challenges brought by ITV, which has prevented the case being heard before now.
Box Clever was formed in 2000 after a merger between the TV rental businesses of Granada (now ITV) and Thorn (now Carmelite). Its pension scheme, with around 2,800 members, now has a buy-out deficit of over £90 million.
Mike Birch, TPR’s Director of Case Management, said: "It is vital for us to be able to introduce new evidence where appropriate when we are pursuing anti-avoidance and so we welcome this latest important ruling.
"The ruling also brings closer the prospect of greater certainty for members of the Box Clever Group Pension Scheme which due to legal challenges by ITV has been delayed for six years.
"We have fought at every stage to bring our case for an FSD and are pleased the courts have agreed with our position. This sends a clear message that we will not shy away from pursuing regulatory action to protect workplace pensions."
ITV originally went to the Upper Tribunal in January 2012 to challenge TPR’s determination to issue an FSD and began its challenge of TPR’s ability to submit additional evidence in late 2013.
A number of hearings followed, including an appeal to the Court of Appeal, before the Upper Tribunal found in TPR’s favour in 2016. ITV then made subsequent requests for permission to appeal with the most recent being refused by the Rt Hon Lady Justice Arden at the Court of Appeal. It is the fourth time the courts have considered these issues and agreed with TPR’s position.
In her decision, the Rt Hon Lady Justice Arden stated that: "[The] Appellants fail to advance any argument...which would entitle this Court to interfere." She then confirmed that TPR is not bound by the case it put before the Determinations Panel and is entitled to raise matters not previously raised where a determination is referred to the Upper Tribunal.
The hearing examining TPR’s decision to issue an FSD is scheduled to start on 29 January 2018 and is expected to last for two weeks.
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