GN Khan v The Commissioners for HMRC

GN Khan v The Commissioners for HMRC

The Appellant made an unprompted disclosure of his failure to notify liability to income tax before HMRC opened their enquiry, but failed to provide evidence to displace the assessment regarding Gaviots Close. The assessments stand, but penalties under Schedule 41 must be recalculated on the basis of an unprompted disclosure.

Parties
Appellant: Mr G N Khan; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
15 July 2024
Procedural Posture
Income Tax Appeal / Judgment After Remote Video Hearing
Outcome
Appeal dismissed except for penalty calculation under Schedule 41; penalties to be recalculated as unprompted disclosure.
Legal Topics
Income Tax, Penalties, Discovery Assessments, Disclosure, Let Property Campaign
Tax Law Income Tax Penalties Discovery Assessments Disclosure Let Property Campaign

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Parties

Mr G N Khan

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal / Judgment After Remote Video Hearing

Legal Issues

  1. 1 Whether the Appellant received rental income from Gaviots Close property
  2. 2 Whether the Appellant made an unprompted or prompted disclosure under Schedule 41 Finance Act 2008

Ratio Decidendi

The Appellant made an unprompted disclosure of his failure to notify liability to income tax before HMRC opened their enquiry, but failed to provide evidence to displace the assessment regarding Gaviots Close. The assessments stand, but penalties under Schedule 41 must be recalculated on the basis of an unprompted disclosure.

Court Disposition

Appeal dismissed except for penalty calculation under Schedule 41; penalties to be recalculated as unprompted disclosure.

Orders

  • Assessments to income tax upheld.
  • Penalties under Schedule 41 to be amended to reflect unprompted disclosure.