The FTT rejected the taxpayer’s appeal against closure notices and discovery assessments (Awdon v HMRC [2023] UKFTT 361 (TC)).
The taxpayer did not make any submissions with regard to penalties, except to say that he had not acted dishonestly. The FTT concluded:
“The penalties are not based on dishonest behaviour, nor have HMRC indicated that they considered at any point that Mr Awdon behaved dishonestly.
The penalties have been calculated and issued on the basis that Mr Awdon’s behaviour with regard to tax was careless. Mr Awdon stated in meetings with HMRC that he had not kept complete records and did not always make a note of transactions, and he was unable to provide HMRC with all of the records required to be kept by his business. I find that he was therefore clearly careless with regard to his tax affairs.
I have considered the mitigation applied by HMRC with regard to the penalty amounts and do not consider that there is any reason to amend it.”
The FTT also said that HMRC’s decision that there were no special circumstances was not flawed.
https://www.bailii.org/uk/cases/UKFTT/TC/2023/TC08785.html
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In Tax Appeals – Law and Practice at the FTT, tax barrister Keith Gordon analyses some 500 precedents to show how the FTT rules are applied in practice, and how taxpayers may use the tribunal system for appealing against tax decisions.
