Cogefin (Bermuda) Limited & Anor v The Commissioners for HMRC

Facts

Cogefin (Bermuda) Limited was incorporated in Bermuda in February 1996 as an exempted company wholly owned by the Poole Family Trust, of which Mr Giuseppe Ciardi was the economic settlor and beneficiary. It was funded with some $7.7m of stock, grew to over $250m by 2011, and its directors were always Bermudian lawyers at MLH Quin, later Wakefield Quin, with administration provided by MQ Services Limited. Besides external investments, the company funded projects connected with Mr Ciardi, including the purchase and renovation of 27 Chester Square, other residential property, art and jewellery, and later solar, wind and gas energy ventures. The matter originated in Mr Ciardi's June 2012 disclosure under the Liechtenstein Disclosure Facility, accepted in September 2013, which described him as an investment adviser to the company. HMRC opened a Code of Practice 8 investigation in 2014 and concluded that central management and control had been exercised by Mr Ciardi from the UK since at least 1999. It issued nineteen discovery assessments for accounting periods ended 1999 to 2017 under paragraph 41 of Schedule 18 to the Finance Act 1998, penalties for failure to notify chargeability for 1999 to 2013, and a personal liability notice on Mr Ciardi for 2010 to 2013. Both appealed; quantum was excluded by agreement.