Stephen John Mullens v The Commissioners for HMRC

Stephen John Mullens v The Commissioners for HMRC

HMRC need only prove culpable conduct and that the assessment was made within the statutory time limit for ETL assessments; the burden to disprove or reduce the assessment rests with the taxpayer. For penalty assessments, once liability and deliberate conduct are established, HMRC bears no further burden to prove loss of tax.

Parties
Appellant: Stephen John Mullens; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
02 October 2023
Procedural Posture
Tax Appeal / Appeal From First Tier Tribunal to Upper Tribunal
Outcome
Appeal dismissed
Legal Topics
Income Tax, Discovery Assessments, Burden of Proof, Penalty Assessments, Extended Time Limits

Case Brief

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Parties

Stephen John Mullens

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Appeal From First Tier Tribunal to Upper Tribunal

  1. 1 Whether HMRC must prove actual loss of tax in extended time limit (ETL) assessments under s.36 TMA
  2. 2 Whether HMRC bears burden to prove loss of tax for penalty assessments after dismissal of tax appeal

Ratio Decidendi

HMRC need only prove culpable conduct and that the assessment was made within the statutory time limit for ETL assessments; the burden to disprove or reduce the assessment rests with the taxpayer. For penalty assessments, once liability and deliberate conduct are established, HMRC bears no further burden to prove loss of tax.

Court Disposition

Appeal dismissed

Orders

  • Assessment Appeal dismissed
  • Penalty Appeal dismissed