Mike Ashley triumphs in data protection dispute against HMRC

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In a decision handed down on Monday, the High Court found that HMRC had improperly withheld personal data belonging to the entrepreneur, and will have to disclose additional information.

The ruling is a win for Sports Direct's chairman, who was seeking compensation from HMRC (Her Majesty's Revenue and Customs) over allegations that it contravened its obligations under data protection laws through "extensive" breaches.

The disagreement is associated with an inquiry into a terminated investigation into Mr Ashley's sale of properties worth approximately £88m to specific vehicles set up by Sports Direct in 2012.

HM Revenue & Customs launched an investigation into the transactions after it was found that the properties had been valued higher than their actual worth. The tax authority claimed that Mike Ashley was owed an extra £13.6 million in tax, but this assessment was cancelled in 2022 following a formal objection.

He then requested HMRC to supply him with all the personal data in their possession that was linked to the tax investigation.

Under data protection law, any individual has the right to ask to see any data an organisation holds about them, a process designated as a Subject Access Request (SAR).

Mr Ashley alleged that HMRC "wrongfully withheld a substantial amount of information on the grounds that it does not constitute Mr Ashley's personal data".

It emerged at the court hearing that the tax authority only supplied limited data 17 months after the data was first requested, a month after the case had proceeded to court.

Lawyers for HMRC stated "frankly acknowledges" that it previously did not meet some of its commitments.

However, they argued that Mr Ashley had "sought to adopt an unwarrantedly sweeping interpretation of his own personal data".

In her ruling, Mrs Justice Heather Williams found that HMRC had taken "an overly restrictive approach" to personal information and incorrectly withheld some details due to an unfounded belief they were not subject to disclosure.

An additional review by HMRC is required to verify that all relevant information has been transferred. The judge will eventually make a decision on any necessary rectifications, including any potential court ruling in Mr Ashley's favour.

A spokesperson for Mike Ashley stated: "Mike was recently included in the top ten highest taxpayers in the UK. However, he thinks that HMRC should be held accountable by Rachel Reeves for its flawed probe into his finances and its subsequent actions. The government remains committed to its growth strategy, but this goal won't be achieved by unfairly targeting high-earners who are prepared to pay their due share."

The verdict brings vindication for Mike, who has faced repeated denials of access to his personal data over several years. The ruling officially acknowledges HMRC's persistent and serious breaches of the law regarding his Subject Access Request.

A HMRC spokesperson stated: “We take very seriously our data protection responsibilities and we respect the rights of taxpayers who wish to access the personal information we hold about them

We accept the court's ruling and its insightful direction, and we will review our stance on Mr Ashley's appeal.

The company has recently been embroiled in a series of court cases over the past couple of years.

Ultimately, giving up on the matter.

Investment banker Jeffrey Blue alleged that Sports Direct owner Mr Ashley made a promise to him, on a night of heavy drinking, to pay him the amount of money if he assisted in doubling the company's share price.

However, a judge ruled that no sensible person would take such casual conversation seriously.

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