Sports Direct tycoon Mike Ashley was “met with a complete stone wall” after his request for personal data following a demand from HM Revenue & Customs (HMRC) for £13.6m in additional taxes, the High Court has heard.
The retail billionaire launched legal action against the government body over claims of “extensive” breaches of data protection obligations, The Times reported.
HMRC is defending the claim but accepts that it did breach obligations to a smaller extent.
It comes after Ashley sold multiple properties to special purpose vehicles owned by Sports Direct International in a deal worth £88.6m back in 2012.
HRMC opened an inquiry into his tax return and issued Ashley a notice claiming he owed a further £13.6m in tax. He challenged the notice and it was withdrawn in October 2022.
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In September 2022, Ashley’s lawyers asked HMRC for the entrepreneur’s personal data in relation to the inquiry.
Ashley’s barrister Anya Proops KC 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.”
The billionaire’s legal team alleged that the tax body provided some data but only 17 months after the request was made, and a month after the legal action was filed.
They also claimed that HMRC is still breaching its obligations over some of the data and are seeking a declaration in his favour in relation to the outstanding data and associated legal fees
James Cornwell, for HMRC, said the firm “frankly accepts” that it previously failed to comply with obligations, but added that the tax body has since “actively sought, in good faith, to rectify that default, at the further expenditure of very considerable time and effort”.
He told the court that Ashley has “sought to adopt an unjustifiably broad interpretation of his personal data” from the start of the request.
The hearing is due to conclude on Tuesday, with a decision expected in writing at a later date.
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