Taxman wins verdict

Friday 22 October 1993 18:02 EDT
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AN APPLICATION for judicial review made by Matrix Securities after the Inland Revenue withdrew an assurance that the tax status of its enterprise zone would not be challenged has been turned down by the High Court.

Mr Justice Laws ruled after two days of hearings that the Revenue had not abused its powers in revoking the assurance of a local inspector that the scheme would qualify for tax relief.

Matrix Securities is trying to raise pounds 95m for the South Quay Enterprise Zone trust.

About pounds 10m is to buy three office blocks in the London Docklands and the rest is to provide rental guarantees and a rates reserve.

So far more than pounds 40m has been raised, but cheques received to date are not being cashed.

Matrix Securities was given leave to appeal. It expects the case to be heard on Monday, with a decision on Tuesday.

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