Steven Hague v The Commissioners for HMRC

Steven Hague v The Commissioners for HMRC

The Tribunal found that the HMRC officer subjectively and objectively believed there was an insufficiency of tax for the relevant years, satisfying s 29(1) TMA. The time limits for raising assessments were properly extended due to the appellant's negligent and deliberate failure to notify chargeability. The appellant failed to discharge the burden of proving the assessments were excessive or to provide credible evidence for further reduction. The penalties were properly imposed for deliberate failure to notify, with the mitigation applied by HMRC being reasonable. The appeal was dismissed and the revised assessments and penalties confirmed in full.

Parties
Appellant: Steven Hague; Respondents: The Commissioners for His Majesty’s Revenue and Customs
Jurisdiction
England and Wales
Judgment Date
11 October 2024
Procedural Posture
Tax Appeal / Judgment After Full Hearing
Outcome
Appeal dismissed
Legal Topics
Income Tax, Capital Gains Tax, Discovery Assessments, Penalties for Failure to Notify, Time Limits for Assessments
Tax Law Income Tax Capital Gains Tax Discovery Assessments Penalties for Failure to Notify Time Limits for Assessments

Case Brief

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Parties

Steven Hague

Appellant

The Commissioners for His Majesty’s Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Judgment After Full Hearing

Legal Issues

  1. 1 Whether HMRC validly raised discovery assessments under s 29(1) TMA 1970 for years where no returns were filed
  2. 2 Whether the officer subjectively and objectively believed there was an insufficiency of tax
  3. 3 Whether time limits for raising assessments were properly extended under s 36 TMA

Ratio Decidendi

The Tribunal found that the HMRC officer subjectively and objectively believed there was an insufficiency of tax for the relevant years, satisfying s 29(1) TMA. The time limits for raising assessments were properly extended due to the appellant's negligent and deliberate failure to notify chargeability. The appellant failed to discharge the burden of proving the assessments were excessive or to provide credible evidence for further reduction. The penalties were properly imposed for deliberate failure to notify, with the mitigation applied by HMRC being reasonable. The appeal was dismissed and the revised assessments and penalties confirmed in full.

Court Disposition

Appeal dismissed

Orders

  • Discovery assessments for 2007-08 to 2015-16 confirmed in the revised total of £67,177.01
  • Penalties under s 7 TMA and Sch 41 FA 2008 for 2007-08 to 2015-16 confirmed in the revised total of £43,665.06