Yip v Revenue and Customs (INCOME TAX AND NATIONAL INSURANCE CONTRIBUTIONS) [2024] UKFTT 434 (TC) (23 May 2024)

Yip v Revenue and Customs (INCOME TAX AND NATIONAL INSURANCE CONTRIBUTIONS) [2024] UKFTT 434 (TC) (23 May 2024)

The Tribunal found that the assessment to tax was insufficient as the £250,000 payment was more likely than not taxable income for consultancy or management services, but HMRC failed to prove on the balance of probabilities that the insufficiency was brought about deliberately by Mr Yip; therefore, the discovery assessment and penalty assessment were invalid due to time limits.

Citation
[2024] UKFTT 434
Parties
Appellant: Chee Whye Yip; Respondents: The Commissioners for His Majesty's Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
23 May 2024
Procedural Posture
Tax Appeal / Final Judgment
Outcome
Appeal allowed
Legal Topics
Income Tax, National Insurance Contributions, Discovery Assessment, Penalties, Time Limits

Case Brief

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Parties

Chee Whye Yip

Appellant

The Commissioners for His Majesty's Revenue and Customs

Respondents

Procedural Posture

Tax Appeal / Final Judgment

  1. 1 Whether the discovery assessment under section 29 of the Taxes Management Act 1970 was valid
  2. 2 Whether the assessment to tax was or has become insufficient
  3. 3 Whether the insufficiency was brought about deliberately

Ratio Decidendi

The Tribunal found that the assessment to tax was insufficient as the £250,000 payment was more likely than not taxable income for consultancy or management services, but HMRC failed to prove on the balance of probabilities that the insufficiency was brought about deliberately by Mr Yip; therefore, the discovery assessment and penalty assessment were invalid due to time limits.

Court Disposition

Appeal allowed

Orders

  • Discovery assessment and penalty assessment set aside