The First-tier Tribunal has found that there were deliberate inaccuracies and has therefore upheld personal liability notices in Malone v HMRC  UKFTT 98 (TC). Some of the key FTT findings were as follows:
“Given the long period during which the Company failed to provide the statutory records to the accountants for completion of the VAT returns, corporation tax returns and company accounts, we agree with HMRC that there was a deliberate act on the part of the Company to conceal those records. In the circumstances, whilst there was a degree of cooperation latterly by the appellant, the penalties imposed are in accordance with the legislation.”
“We have no hesitation in agreeing with HMRC that the inaccuracies in the VAT and corporation tax returns are attributable to the appellant.
We find that the appellant cannot reasonably have believed that the information provided to HMRC, and the VAT and corporation tax returns was accurate and, as such, we find that those returns were provided in the knowledge that they were not accurate and with the intention that HMRC should rely upon them.
We note that there was no appeal against the assessments and penalties by either the Company or its liquidator.”