This was a successful appeal from the FTT on a case involving time limits and discovery assessments (Danapal v HMRC [2023] UKUT 86 (TCC)).
The Upper Tribunal found as follows:
- The FTT made an error of law in not giving adequate reasons for its decision on the carelessness issue.
- The FTT made an error of law in concluding that Firm A had acted deliberately in relation to the inaccuracy contained in Dr Danapal’s tax return for 2007-08 regarding the capital allowance claim for that year.
- For a number of reasons, it was not open to the FTT on the basis of the evidence before it to make a finding that Dr Danapal had deliberately omitted fee income from his tax returns.
- HMRC had not satisfied the burden that rested with them to prove that either the taxpayer or his accountants had acted carelessly or deliberately in relation to the insufficiency of tax.
- It followed that all the assessments were made out of time.
https://www.bailii.org/uk/cases/UKUT/TCC/2023/86.html
Related content from Claritax Books
Discovery Assessments, by tax barrister Keith Gordon, is a detailed, clearly written guide to the law and practice in this area. Based on the author’s personal involvement in many leading cases, the book contains much practical advice explaining when and how such assessments may be challenged.