Michael practices in all areas of tax law and practice.
Particular examples of advisory work give a flavour:
Mergers and acquisitions raise many tax issues, and Michael is regularly involved. One area of particular interest is the loan relationship code, which presents both opportunities and pitfalls. Here all the issues of personal taxation, employee taxation, treatment of trading profits and losses for corporation tax overlap and interact with capital taxation.
EBT’s; Dividend remuneration post F.A. 2003; FURBS (including in particular N.I. and FURBS); use of old EBT’s; emigration double tax treaties and EBT’s; ratchet shares; shares mirroring options but avoiding option and conditional share treatment. Michael’s success in Mansworth v Jelley illustrates his sureness of judgment in this field.
VAT & Duties
VAT often interacts with other areas of tax. However recent and ongoing matters concerned principally with VAT include treatment of distance learning materials, buildings for private schools, (both planning and litigation), ensuring rulings are honoured (see ex p. Kay – Customs & Excise judicially reviewed; proof of export (the rules were amended in 2003). Duties cases include carousel fraud and the quantification of excise duty involved.
Accounting and tax
From loan relationships through provisions to prior year adjustments, tax and accounting principles interplay. Recently one case raised a variety of issues including: valuation at 31 March 1996; whether accounts were prepared in accordance with UK GAAP, was a 50:50 JV "connected" to either investor; does a loss "arise" if a debt is doubtful/bad at the time it is made. Interesting current instructions involve relevant discounted securities in the context of inheritance tax planning.
The wealthy private client or businessman has both short and long horizons. Michael has wide experience of this work including e.g. offshore trusts (visiting Jersey regularly.) Recently a property transaction for thirty million by an offshore company raised issues of VAT, Taxes Act 1988 section 776, what constitutes a branch or agency, emigration and TCGA s.10A, double tax treaties with Israel, Belgium, Mauritius, New Zealand ……
Often significant private client issues arise in mergers and acquisitions.
Recent experience includes preparing a dot.com group for listing on AIM and NASDAQ. Issues included ratchet shares for employees, unbundling the corporate structure so that intermediate capital qualified for Venture Capital Relief, and Stamp Duty relief on the reconstruction.
From VAT planning to excess rents this work is often challenging, involving several difficult tax problems in a single transaction, from VAT partial exemption through Schedule A treatment of reverse premiums to Stamp Duty, and Stamp Duty Reserve Tax. A recent case involved the VAT treatment of a grant to a major museum exceeding ten million pounds where the donor charity wished to secure extensive "editorial" control over the application of the funds and the acknowledgements. Another involved a school and V.A.T. on its new theatre - avoiding the consequences of the Halifax decision.
The Revenue's Special Compliance Office and Customs Officers sometimes takes bad technical points. Michael has helped to resolve cases by advising and by attending meetings with the Revenue and Customs.
Most recently an interesting case involving the application of the remittance basis to Swiss fiduciary money market deposits lead to a constructive meeting with the Revenue's case officer accompanied by a senior member of International Division.
As a co-author of Whiteman on Income Tax (and sole editor of its annual supplements) Michael has written extensively on this subject. He advises regularly on the duties of taxpayers and recently gained a notable success on the issue of disclosure and “discovery” in the landmark decision of Park J. on “discovery” in the context of self assessment; see Langham v Veltema.
Michael has closely monitored the genesis of the current obligations of tax advisers through his involvement in CFE (the European Tax Advisers’ federation), the Chartered Accountants’ Business Law Committee (of which Michael is Chairman) the Revenue Bar Association, and the Tax Faculty. He is uniquely placed to advise those professionals who are unsure how to resolve their duty to their client and their duty to make disclosure. During May 2003 he regularly lectured on this subject in anticipation of the new Regulations coming into force in later this year.
For the tax practitioner, professional negligence is the ever present “ghost at the feast.”
Capability in this area requires a combination which is rare-
- pre-eminent knowledge of tax law;
- advocacy skills which can turn the mind of the highest court (see e.g. Palmer v Moloney in the Court of Appeal)
- an ability to handle lay clients (ask those who have experience: see www.michaelsherry.co.uk).
Directories - Professional Recommendations
"He provides excellent service and responsive, clear opinions." "Very calm under pressure, he is unflappable and erudite in his advice." - Chambers and Partners 2021: Tax
‘He is very approachable and able to explain complex matters clearly to clients.’ - Legal 500 2021
"He is exceptional in defending his clients’ position" - Legal 500 2019
"A thoughtful barrister with a calming manner." - Chambers & Partners 2019: Tax
"He provides practical advice backed up by sound written opinion." - Legal 500 2017
Expertise: "Very commercially minded. He's inventive, a very good technician, and good at coming up with solutions to problems - we go to him when we hit a brick wall."
Recent work: He acted for the taxpayer in a capital gains tax case concerning enterprise investment scheme and taper relief.”
Chambers and Partners 2015 – Indirect Tax: A general tax expert who represents clients in cases concerning indirect tax issues. He handles VAT matters relating to the education sector, and is also active in the areas of duties and property taxation.
Legal 500 2014 Corporate and VAT: ‘His advice gives you full confidence that matters are dealt with in an efficient and cost-effective manner.
Legal 500 2014 Private Client – Personal Tax: thoughtful, clear and very willing to work collaboratively.
Hancock & Anor v Revenue and Customs  UKSC 24
Shannon v Revenue and Customs  UKFTT 17 (TC)
Stolkin v HM Revenue and Customs  EWCA Civ 447
Revenue & Customs v Forde and McHugh Ltd  UKSC 14 (TC)
Allan v Revenue & Customs  UKFTT 142 (TC)
Alchemist (Devil's Gate) Film Partnership v Revenue & Customs  UKFTT 157 (TC)
Chipping Sodbury Golf Club & Ors v Revenue & Customs  UKFTT 557 (TC)
Boyer Allan Investment Services Ltd v Revenue & Customs  UKFTT 558 (TC)
Stolkin v Revenue & Customs  UKFTT 831 (TC)
Omar v Revenue & Customs  UKFTT 722 (TC)
Segesta Ltd v Revenue & Customs  UKFTT 235 (TC)
Grays Timber Products Ltd v Revenue and Customs (Scotland)  UKSC 4
Monro v HM Revenue & Customs  EWCA Civ 306
Irving v HM Revenue & Customs  EWCA Civ
Company A v Revenue & Customs  UKSPC SPC00602
College of Estate Management v. Customs and Excise  UKHL 62
Shepherd v Revenue and Customs  UKSPC SPC00484
Weston v HM Inspector of Taxes  EWCA Civ 742
Her Majesty's Inspector of Taxes v Jelley  EWCA Civ 1829
Cumulative Supplements to Whiteman on Income Tax- sole editor (joint editor 2003)
Cumulative Supplements to Whiteman on Capital Gains Tax - sole editor
Tax Planning for Family Company Shareholders (Keyhaven)
Whiteman on Income Tax (3rd Ed. Sweet & Maxwell - Co-author)
Michael is a regular lecturer on tax topics; recent talks have included:
- recent tax cases, for the International Fiscal Association
- money laundering and the tax adviser for the Tax Faculty and the Audit Faculty
- UK GAAP and profits for tax for the Addington Society and the Revenue Bar Association and Key Haven
- VAT place of supply rules for 3 Temple Gardens Tax Chambers Talks
- VAT composite and multiple supplies for 3 Temple Gardens Tax Chambers Talks
- VAT vouchers, tokens and discounts for 3 Temple Gardens Tax Chambers Talks
-Mansworth v Jelley for Deloitte and Touche
Mansworth v Jelley a long and winding tale: given to Deloitte & Touche on Monday 16th June 2003.
VAT - Mixed or composite supplies; the obvious distinction between goods and services
Submission in response to the EU Commission's consultation on the use of International Accounting Standards as a starting point for a common consolidated corporate tax base.
Business law and the tax adviser for the Tax Faculty's Annual Conference April 12, 2003.
The EU Commission's April 2002 conference on "Removing barriers within the single market - a common corporate tax base" published in Taxline,
Topical aspects of taper relief - KeyHaven conference, December 10, 2002.
UK GAAP and profits for tax - Addington Society, November 27, 2002.
UK GAAP and corporate profits - KeyHaven conference. June 12, 2003
Admitted to The Society of Trust and Estate Practitioners
April 2012 Appointed Head of Chambers at Temple Tax Chambers
Chair Chartered Accountants' Business Law Committee;
May 2003 Wyman Debate - Head of Policy Inland Revenue and Head of Policy Customs & Excise; April 2003 Panellist CFE Forum, Brussels; Participated in EU Commission panel of experts on possible use of IAS for a common consolidated corporate tax base, March 2003
April 2002 Panellist at EU Conference at invitation of EU Commission;
UK panel representative invited by the EU Commission to participate in the open conference on harmonisation of the corporate tax base in Europe;
September 2002 Gray's Inn Barristers' Committee.
Elected to the Council of the Institute of Chartered Accountants for a term of three years.
Appointed* a United Kingdom representative to the Federation of European Tax Professionals (CFE)
Elected Chairman of the Tax Faculty of the Institute of Chartered Accountants for a term of two years.
Elected President of the Institute of Indirect Taxation, a position he held until early 1999
Michael was asked to sit on an Inland Revenue confidential consultation which resulted in the rewriting of the Settlement provisions (Taxes Act 1988 sections 660A-660G.)
1985 to 1992
Secretary of the Revenue Bar Association, during which time he was much involved in the development of direct access to the Bar.
1984 - 1985
Completed pupillages in Chancery and Tax Chambers before being offered a place at 3 Temple Gardens Tax Chambers from where he has since carried on his independent practice.
1978 - 1983
Joined Ernst & Young's predecessor firm Arthur Young where he qualified as a Chartered Accountant in 1981 and gained admission to the Chartered Institute of Taxation in 1982.
He was a founder member of Ernst & Young's oil industry tax group.
Law degree at Oxford in 1977 followed by Bar Finals in 1978.
Scholarship to Lincoln College, Oxford
* Reappointed 2001, 2002, 2003
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