Skatteforvaltningen (The Danish Customs and Tax Administration) (Appellant) v MCML Ltd (previously known as ED&F Man Capital Markets Ltd) (Respondent)

Case summary

Case ID

UKSC/2025/0090

Parties

Appellant(s)

Skatteforvaltningen, the Danish Customs and Tax Administration ("SKAT")

Respondent(s)

MCML LTD (previously known as ED&F Man Capital Markets Ltd) (“EDFM”)

Issue

Is a claim brought by SKAT against EDFM barred by issue estoppel because of the dismissal of an earlier claim brought by SKAT against EDFM?

Facts

The appellant (SKAT) is the Danish Customs and Tax Administration. In previous legal proceedings in 2018, SKAT sued a number of defendants, including the respondent (EDFM). SKAT claimed that the defendants had made misrepresentations which induced it to pay out large sums of money by way of tax refunds to people who had no entitlement to them. As regards EDFM, SKAT alleged that the misrepresentations had been made negligently, but not fraudulently. SKAT’s claims were struck out by the judge in the High Court, Andrew Baker J, on the basis that the claims were barred by the “Revenue Rule”. This is a well-established principle that the English courts will not entertain a claim brought by a foreign state for the purpose of tax collection. SKAT successfully appealed against that ruling against the other defendants, but the successful ground of appeal was not pursued against EDFM. In 2022, SKAT issued a second claim against EDFM, which is the claim with which this appeal is concerned. The 2022 claim is similar to the previous claim. SKAT allege that EDFM made misrepresentations which induced SKAT to paying out tax refunds which were not due. It is now alleged, however, that EDFM made those representations fraudulently, rather than negligently. In the High Court, EDFM applied to have the proceedings struck out. EDFM argued that the doctrine of issue estoppel barred SKAT from bringing the claim. Issue estoppel is a doctrine which prevents parties from relitigating disputes that have already been decided in previous litigation between the same parties. The High Court concluded that SKAT was not barred by issue estoppel and was free to continue its claim. The Court of Appeal overturned that conclusion by a majority (Lord Justice Nugee partially dissenting), such that the claim would be struck out on the basis of the issue estoppel. SKAT now appeals to the Supreme Court. The appeal concerns the scope of the doctrine of issue estoppel.

Date of issue

27 May 2025

Case origin

PTA

Judgment appealed

Written arguments

Statements of Facts and Issues

Judgment details

Judgment date

1 July 2026

Neutral citation

[2026] UKSC 19

Appeal

Justices

Lord Sales

Lord Lloyd-Jones

Lady Rose

Lady Simler

Lord Doherty

Hearing dates

Full hearing

Start date

11 February 2026

End date

12 February 2026

Watch hearings

Permission to Appeal

Justices

Lord Hodge

Lord Burrows

Lady Rose

Permission to Appeal decision date

31 July 2025

Permission to Appeal decision

Granted in part

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