While v Revenue & Customs (Rev 1) [2012] UKFTT 58 (TC) (17 January 2012)

While v Revenue & Customs (Rev 1) [2012] UKFTT 58 (TC) (17 January 2012)

Neither the condition of negligent conduct nor the condition that HMRC could not reasonably have been aware of the insufficiency was satisfied. Mr While and his advisers acted reasonably in omitting the damages from the tax return, and sufficient information was available to HMRC during their enquiry to preclude a valid discovery assessment. Therefore, the discovery assessment was invalid and the appeal was allowed.

Citation
[2012] UKFTT 58
Parties
Appellant: Anthony While; Respondents: The Commissioners for Her Majesty’s Revenue & Customs
Jurisdiction
United Kingdom
Judgment Date
17 January 2012
Procedural Posture
Income Tax/corporation Tax Appeal / Appeal Against Discovery Assessment Before First Tier Tribunal (tax Chamber)
Outcome
Appeal allowed
Legal Topics
Discovery Assessment, Negligence, Self Assessment, Section 29 TMA 1970, Taxability of Damages, Wrongful Dismissal, Section 148 ICTA 1988
Tax Law Discovery Assessment Negligence Self Assessment Section 29 TMA 1970 Taxability of Damages Wrongful Dismissal Section 148 ICTA 1988

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Parties

Anthony While

Appellant

The Commissioners for Her Majesty’s Revenue & Customs

Respondents

Procedural Posture

Income Tax/corporation Tax Appeal / Appeal Against Discovery Assessment Before First Tier Tribunal (tax Chamber)

Legal Issues

  1. 1 Whether the discovery assessment under section 29 TMA 1970 was valid
  2. 2 Whether the taxpayer or his advisers acted negligently in omitting damages from the tax return
  3. 3 Whether sufficient information was disclosed to HMRC to preclude a discovery assessment

Ratio Decidendi

Neither the condition of negligent conduct nor the condition that HMRC could not reasonably have been aware of the insufficiency was satisfied. Mr While and his advisers acted reasonably in omitting the damages from the tax return, and sufficient information was available to HMRC during their enquiry to preclude a valid discovery assessment. Therefore, the discovery assessment was invalid and the appeal was allowed.

Court Disposition

Appeal allowed

Orders

  • Discovery assessment set aside
  • No further action required regarding ESC A19